The European Central Bank (ECB) has reduced interest rates by a quarter-point to 3.25%, marking the lowest level since May 2023. This decision follows a similar cut last month and reflects concerns over weakening growth and inflation in the Eurozone. The ECB indicated that inflation pressures are now expected to be lower than previously forecasted, with inflation falling to 1.7% in September, below the 2% target for the first time in over three years. Traders anticipate additional rate cuts in the coming months, with a strong likelihood of another reduction in December. While the ECB emphasised a data-driven approach to future policy decisions, experts view this cut as a shift toward quicker monetary easing. Similar trends are seen in other central banks, with the US Federal Reserve and the Bank of England also signaling intentions to lower rates.