The European Central Bank (ECB) cut all three key eurozone interest rates for the second time this year, as falling inflation, driven by lower energy prices, created space for further monetary easing.
The decision came after the ECB's monetary policy meeting on Thursday at its headquarters in Frankfurt, Germany.
The deposit facility rate, which reflects the ECB's monetary policy stance, was lowered by 25 basis points to 3.50 percent. The main refinancing rate, the rate banks pay when borrowing from the ECB, dropped by 60 basis points to 3.65 percent. The marginal lending rate, the rate charged for overnight loans, was also cut by 60 basis points to 3.90 percent.
In June, the bank reduced all three key rates by 25 basis points, the first cut since pausing its rate hikes in October 2023. In July, the ECB chose to keep the rates steady.
Preliminary data released by Eurostat on August 30 showed that eurozone inflation dropped to a three-year low of 2.2 percent in August, primarily due to declining energy prices.
Analysts said the sharp decline in inflation paved the way for the ECB's latest move to ease monetary policy in September.
ECB cuts eurozone rates as inflation hits two-year low
Iranian President Masoud Pezeshkian said on Monday that his country has not sent hypersonic missiles to Yemen's Houthi group.
The president made the remarks at a press conference in Tehran, in response to a question from an Al Jazeera news network reporter who quoted political experts saying that Iran has supplied hypersonic missiles, or the technology to develop them, to the Houthis.
Iran has hypersonic missiles, but not of the same kind that the Houthis possess, Pezeshkian said, adding that the Houthis themselves had developed the missiles over time.
It is impossible for Iran to send missiles to Yemen covertly when it takes more than a week just to send solely human forces to the country, he said.
Pezeshkian said that Iran and the Houthis have worked together against Israel's "genocide" in Gaza, and stressed that the international community should condemn the crimes against humanity committed by Israel.
"If [the Western] countries are worried about the security of Israel, why are they not concerned about the security of Gaza Strip, the security of Palestine and innocent people? Civilized countries and supporters of human rights should not allow power to bomb and kill innocent civilians while simultaneously accusing Iran of supplying missiles to Yemen's Houthis," said Pezeshkian.
On Iran-U.S. relations, Pezeshkian emphasized Iran's pursuit of peace over conflict and clarified that Iran has no intentions of building nuclear weapons.
However, he said, the U.S. has chosen to abandon the Iran nuclear deal and made threats against Iran. The possibility of a relaxation in strained relations between the two sides hinges on the U.S. dropping its animosity towards Iran and revoking its extensive sanctions against the country, he said.
"We don't want to start a war, but the U.S. wants to impose wars on us. If the U.S. is willing to respect Iran's rights, we will not engage in conflict with the U.S. or any other party. We hope to develop safely in our own country without the U.S. undermining Iran's security or threaten and humiliate Iran. we will never accept humiliation," Pezeshkian said.
Iran has not sent hypersonic missiles to Yemen's Houthis: President Pezeshkian
