The European Central Bank (ECB) cut its Main refinancing operations rate by 25 basis points to 1.00% from 1.25%. Previously the ECB also cut the interest rate by 25 basis points at its November meeting. The ECB last increased the interest rates by 25 basis points at its July meeting; pausing in May and June, after raising the rate by 25 basis points to 1.25% in April this year. The Euro Area reported annual HICP inflation of 3% in November and October and September, 2.5% in August and July, 2.7% in June (same as May) and above the Bank’s inflation target of maintaining inflation below, but close to, 2% over the medium term.
The Euro Area reported quarterly GDP growth in the September quarter of 0.2% (1.4% y/y); the same as the June quarter of 0.2%, following a 0.8% increase in the March quarter, and a 0.3% increase in the December quarter of 2010. The Euro (EUR) us basically flat against the US dollar so far this year, while the EURUSD exchange rate last traded around 1.34
