On Thursday, the European Central Bank decided to lower interest rates by 0.25 percentage points. This action is justified by the expected achievement of the inflation target at 2 percent. After the announcement,

The European Central Bank cut interest rates on Thursday and policymakers guided for a further reduction in March as concerns over lacklustre economic growth supersede worries about persistent inflation.

The Fed kept rates steady at 4.25%-4.50%, signalling caution amid strong US growth and elevated inflation. Meanwhile, the ECB faces pressure to cut rates further as the eurozone economy weakens. The euro fell to 1.