The European Central Bank lowered borrowing costs for a fifth time since June, with the region’s economy stalling and the 2% inflation target in reach.

As fully expected, the ECB reduced the deposit rate by a quarter-point to 2.75%, and continued to describe their current monetary-policy stance as “restrictive,” signaling more easing is in the pipeline.

“The disinflation process is well on track,” the ECB said in a statement.

“The economy is still facing headwinds but rising real incomes and the gradually fading effects of restrictive monetary policy should support a pick-up in demand over time.”

Policymakers have been looking past a recent uptick in inflation, confident that their goal will be met this year and instead fretting about the sputtering performance of the euro zone’s 20-nation economy, which unexpectedly stagnated at the end of 2024.

Given the somewhat nothingburger of a statement, it’s no surprise that EUR is barely moving…

Can Christine shake things up?

Watch the press conference live here (due to start at 0845ET):