The decision came after new figures showed inflation across the bloc had fallen to its lowest level in more than three years.

Policymakers who set interest rates for the 20 countries that use the euro have lowered rates in back-to-back meetings for the first time since 2011.

Lower rates kick in on October 17, making it more affordable to purchase a home, or a car

The decision is to majorly benefit tracker mortgage holders.

European Central Bank policymakers meet on Thursday with fading price pressures and weaker economic activity in the eurozone nudging them towards making another cut to interest rates. "The ECB is on a path to cut interest rates at each one of the next five policy meetings," including Thursday's gathering, HSBC bank analyst Chris Hare said.

Oct. 17 (UPI) -- The European Central Bank's governing council Thursday cut three key interest rates by 25 basis points, based on inflation falling.

The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, is cutting borrowing costs once again after figures showed inflation across the bloc falling to its lowest level in more than three years...

The BOK cut its benchmark interest rate from 3.5% to 3.25% after a “clear trend of stabilization” with inflation.

Rate cut is its third since June and shows optimism among rate-setters over the path of inflation

Economists and investors expect the bank to deliver another cut in December.

The RBNZ slashed rates from 5.25% to 4.75% on Wednesday, marking its second straight cut to its interest rate since August.

The European Central Bank (ECB) interest rate decision will be announced following the October monetary policy meeting at 12:15 GMT on Thursday.