On September 12, 2024, the European Central Bank (ECB) lowered its key interest rate by 25 basis points, from 3.75% to 3.5%, marking its second cut of the year. This cautious reduction aims to stimulate growth amidst a sluggish economy and declining inflation, which fell to 2.2% in August. ECB President Christine Lagarde emphasized that while inflation is nearing the target of 2%, the bank remains vigilant regarding economic indicators and will not pre-commit to future cuts. The ECB also reduced its full-year growth forecast to 0.8%, indicating ongoing concerns about economic performance. In response, Denmark's central bank matched the ECB's rate cut to defend its currency peg to the euro. Experts caution that while rates may be lowered further, any future cuts will be determined on a meeting-by-meeting basis.