MNI BRIEF: ECB Cuts Rates, Drops Restrictive Policy Reference

The ECB cut its three key interest rates by 25 basis points on Thursday, bringing the benchmark Deposit Facility rate down to 2.25%. The main refinancing operations and the marginal lending facility will be decreased to 2.40% and 2.65% respectively. (See MNI SOURCES: Tariffs Make ECB More Likely To Cut In April )

The ECB dropped a reference to monetary policy being "restrictive" in its post-meetinng statement, saying just that the central bank was "determined to ensure that inflation stabilises sustainably at its 2% medium-term target. Especially in current conditions of exceptional uncertainty, it will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance." (See MNI SOURCES: ECB Likely To Adjust Or Remove 'Restrictive' )

Decisions going forward will remain "data dependent"  and will be decided on a meeting-by-meeting approach, with the Governing Council again stressing there is no set path for interest rates. (see MNI ECB WATCH: 25BP Cut Likely As Tariffs Darken Outlook )