After ECB rate cut, Lagarde signals further cuts to come
The ECB cut the deposit interest rate, which is the new policy rate, by 25bp. Don’t forget that the spread between the deposit rate and the refi rate will be lowered to 15bp next week as a result of the ECB’s review of its operational framework. This means that as of next week, the deposit rate will be at 3.5% and the refi rate at 3.65%.