European Central Bank Cuts Interest Rates, Lowers Growth Forecast

Policymakers at the European Central Bank (ECB) have cut interest rates, citing lower inflation and slowing economic growth as factors behind their decision to loosen monetary settings. The ECB’s governing council voted on Sept. 12 to lower the benchmark interest rate—known as the deposit facility rate—by 25 basis points, or a quarter of a percentage point. “Based on our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to take another step in moderating the degree of monetary policy restriction,” ECB President Christine Lagarde and Vice President Luis de Guindos said in a joint statement....