The European Central Bank (ECB) has again lowered the most crucial interest rate in the eurozone.
As expected, the central bank’s policymakers in Frankfurt decided to lower the borrowing costs by a quarter of a percentage point. With the lower interest rate, the ECB wants to support the ailing economy of the eurozone.
The central bank has lowered the interest rate in four steps of a quarter of a percentage point this year from a record level of 4 percent to the current rate of 3 percent.
A lower interest rate makes it cheaper for banks to borrow money from the central bank. TBankscan,t wherefore, lowers the interest rate for the money they lend to consumers, companies, and governments. As a result, they may spend and invest more.
Mortgage rates will also fall. Saving, on the other hand, yields less.
