Officials in some countries started cutting rates last year, but others, including those in Europe and the United States, have taken a more cautious approach.

With inflation subsiding, the European Central Bank is cutting its benchmark interest rate to prop up tepid growth with lower borrowing costs for companies and home buyers.

The European Central Bank is expected to cut interest rates on September 12 due to falling inflation and sluggish growth. Analysts predict a 25 basis point reduction in the deposit rate. Further cuts may follow in December and throughout 2025,