The ECB lowered its three key interest rates by 25 bps setting the the deposit facility to 2.75%, the main refinancing operations to 2.90%, and the marginal lending facility to 3.15%. The ECB noted that the “APP and PEPP portfolios are declining at a measured and predictable pace.” In terms of inflation, the ECB said that “the disinflation process is well on track” and that inflation “is set to return to the Governing Council’s 2% medium-term target in the course of this year.” The ECB said that the economy is still facing “headwinds” but that “rising real incomes” and lower rates should “support a pick-up in demand over time.”