The ECB cut interest rates for a second time this year at the September policy setting meeting of its Governing Council. The Deposit rate was lowered to 3.50%. Meanwhile, the refi rate was cut to 3.65%, which entailed a previously announced technical adjustment of a reduction in the spread between the Depo and Refi rates from 50bps to 15bps. Today’s rate cuts were very much in line with market expectations. The previous rate cut from the ECB and the start of this easing cycle occurred in June, when the Depo rate was reduced from 4.00 to 3.75%. Today’s decision by the ECB to ease policy was unanimous.