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# ECB Cuts Deposit Rate to 3.50% in Second Reduction of 2024 as Inflation Nears Target
- URL: https://www.theglobalbanker.com/ecb-cuts-deposit-rate-3-50-second-reduction-2024-inflation-target/
- Published: 2024-09-12T11:52:00.000Z
- Updated: 2026-11-02T03:05:06.000Z
- Description: The ECB cut its deposit facility rate by 25 basis points to 3.50% and narrowed the rate corridor, with President Lagarde stressing a data-dependent, meeting-by-meeting approach.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe, #archive

The European Central Bank cut its deposit facility rate by 25 basis points to 3.50% on 12 September 2024, delivering its second rate reduction of the year as eurozone inflation continued its gradual convergence towards the 2% target. The decision was taken unanimously by the Governing Council, with ECB President Christine Lagarde indicating after the meeting that further gradual cuts remained on the table if the disinflation process continued on its current trajectory. The September move follows the ECB's first reduction in June 2024, when the Governing Council began unwinding the restrictive policy stance it had built up over 2022 and 2023 in response to the post-pandemic surge in consumer prices.

#### CORRIDOR NARROWED IN OPERATIONAL FRAMEWORK CHANGE

Alongside the headline deposit rate cut, the ECB made a technical adjustment to the structure of its interest rate corridor by narrowing the spread between the deposit facility rate and the main refinancing rate to 15 basis points. 

The change had been announced on 13 March 2024, when the ECB concluded the review of its operational framework, and took effect on 18 September 2024.

#### LAGARDE FLAGS DATA-DEPENDENT PATH AHEAD

Lagarde told reporters after the decision that the Governing Council was not pre-committing to any specific rate path and would continue to assess incoming data on inflation, economic activity, and financial conditions at each meeting. 

The ECB's next scheduled policy meeting was in October 2024\. Updated staff projections were published alongside the September decision.