The European Central Bank (ECB) cut interest rates by 0.25 percentage points to 3.5%, responding to falling Eurozone inflation, which hit a three-year low of 2.2%, and signs of economic slowdown. ECB President Christine Lagarde confirmed more rate cuts are expected, but not likely in October. The decision reflects easing inflationary pressures, particularly as wage growth is being absorbed by declining company profits. The ECB slightly reduced its growth forecasts for 2023 and 2025, while maintaining inflation expectations for the next year. Economic concerns are growing due to weakening private consumption and investment.