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# ECB Cuts All Three Key Interest Rates by 25 Basis Points in First Reduction Since 2019
- URL: https://www.theglobalbanker.com/ecb-cuts-all-three-key-rates-25-basis-points-first-time-since-2019-june-2024/
- Published: 2024-06-06T18:49:00.000Z
- Updated: 2026-10-02T14:39:33.000Z
- Description: The ECB cut its deposit rate to 3.75%, MRO to 4.25%, and marginal lending to 4.50% on 6 June 2024, the first rate cut since 2019, with only one Governing Council member opposed.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe, #archive

The European Central Bank has cut all three of its key interest rates by 25 basis points, with the deposit facility rate moving to 3.75%, the main refinancing operations rate to 4.25%, and the marginal lending facility rate to 4.50%. The simultaneous reduction across all three rates, announced in a monetary policy statement on the ECB's website on 6 June 2024, is the ECB's first rate cut since 2019.

The decision was backed by all but one Governing Council member, with Austria's Robert Holzmann opposing the cut. 

#### THREE-RATE STRUCTURE AND WHAT CHANGED

The ECB operates through a three-rate framework rather than a single policy benchmark, a structure that provides a corridor within which overnight market interest rates are anchored. The deposit facility rate — representing the remuneration banks receive on overnight deposits held at the central bank — is the rate most closely monitored by financial markets, as it effectively sets the floor for short-term money market rates throughout the Eurozone, influencing the cost of borrowing for banks, businesses, and households alike.

The main refinancing operations rate governs the cost of weekly liquidity operations through which banks can access central bank funding, while the marginal lending facility rate sets the ceiling for overnight borrowing. By reducing all three rates by 25 basis points, the Governing Council preserved the existing width of the interest rate corridor.

The Governing Council signalled that it would not follow a mechanically pre-set schedule of further reductions, maintaining its data-dependent approach to policy decisions. Future adjustments will be guided by incoming data on inflation across the Eurozone, wage settlements, credit conditions, and the overall pace of economic activity. ECB staff projections were updated at the time of the decision.