European Central Bank Cuts Key Interest Rates

The European Central Bank, ECB, cut its key interest rate Thursday by a quarter-point.

The ECB cut its benchmark rate to 3-point-75 percent from a record high of 4 per cent at a meeting of the bank’s 26-member rate-setting council in Frankfurt.

This moved it ahead of the US Federal Reserve as central banks around the world lean toward lowering borrowing costs.

That’s a shift with far-reaching consequences for home buyers, savers and investors.

Speaking afterward at a news conference, ECB President Christine Lagarde said inflation had eased enough for the central bank to start lowering rates.