FRANKFURT (dpa-AFX) - The key interest rate cut by the European Central Bank (ECB) did not move investors on the German stock market on Thursday. The Dax, which had started trading just below its record high, remained roughly at the previous day's level after the interest rate decision and closed 0.13 percent higher at 20,426.27 points. The MDax ultimately fell by 0.43 percent to 26,812.99 points.

The ECB lowered its key interest rate for the fourth time this year. It responded to the weakening economy in the eurozone with a move of 0.25 percentage points. In addition, the inflation and growth forecasts were adjusted slightly downwards. Economists expect the central bank to lower the key interest rate even further next year. This is because trade conflicts with the USA and its re-elected President Donald Trump, for example, could put additional pressure on the weakening economy in Europe.

"That was not the last step downwards," said Ulrich Kater, Chief Economist at DekaBank. "The economic pessimists now carry a lot of weight in the ECB Governing Council. The key interest rates will move downwards to at least a neutral level of 2 percent in the coming year," he expects.

Florian Heider, Scientific Director of the Leibniz Institute for Financial Market Research Safe, commented: "Today's decision shows that the ECB is using this small interest rate cut to counter the many prevailing uncertainties, particularly of a geopolitical nature, and to safeguard financial market stability. The slight increase in inflation and the decision to cut interest rates have already been priced in by the markets, which justifies this decision."/edh/nas