(fxcue news) - European stocks closed on a mixed note on Thursday with investors digesting the European Central Bank's decision to cut interest rates by 25 basis points, and weighing the prospects of another cut in the first quarter of 2025. The Swiss National Bank reduced its benchmark rate by a sharper-than-expected 50 basis points to curb the strength of the Swiss franc. At the first policy meeting of Martin Schlegel as chairman, the policy rate was lowered to 0.5% from 1%. The new rate takes effect on December 13. Investors awaited the Federal Reserve's policy announcement next week, and waited for French President Emmanuel Macron to appoint a new prime minister. The pan European Stoxx 600 closed down 0.14%. France's CAC 40 edged down 0.03%, while the U.K.'s FTSE 100 and Germany's DAX gained 0.12% and 0.13%, respectively. Switzeland's SMI gained 0.29%. Among other markets in Europe, Austria, Belgium, Greece, Iceland, Ireland and Portugal closed higher. Denmark, Finland, Netherlands, Poland, Russia, Spain and Sweden ended weak, while Norway and Turkiye closed flat. The ECB lowered its key interest rate by 25 basis points again, in line with economists' expectations, as policymakers assessed that the disinflation process is on track though growth concerns remain. The Governing Council, led by ECB President Christine Lagarde, cut the key policy rate - the deposit rate - by a quarter-basis point to 3% on Thursday. The previous change was a reduction by the same volume in October following a similar cut in September. The main refinancing rate or the refi was reduced to 3.15% and the marginal lending facility rate to 3.4%. "[The Governing Council] will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance," the ECB said. ECB policymakers will base their interest rate decisions on the "assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission", the bank added. "The Governing Council is not pre-committing to a particular rate path." In its latest round of macroeconomic projections, unveiled on Thursday, the ECB staff forecast Eurozone headline inflation at 2.4% this year, 2.1% next year, 1.9% in 2026 and 2.1% in 2027. Core inflation is projected at 2.9% this year, 2.3% next year, and 1.9% in both 2026 and 2027. The euro area economy is projected to grow 0.7% this year, 1.1% next year, 1.4% in 2026 and 1.3% in 2027. In the UK market, Diageo rallied 2.77% thanks to a rating upgrade by UBS. Severn Trent, Scottish Mortgage, Barclays, Pershing Square Holdings, Lloyds Banking Group, BAE Systems, IAG, Sage Group, Sainsbury (J), Centrica, United Utilities, Smith & Nephew, Marks & Spencer Group and Schrodders gained 1 to 2%. Rentokil Initial closed nearly 4% down. Antofagasta drifted down 3.4%. Associated British Foods, ICG, Fresnillo, Endeavour Mining, Berkeley Group Holdings, Vistry Group and Diploma closed lower by 2 to 3%. Persimmon, Rio Tinto, Melrose Industries, Bunzl, Glencore and Halma also declined sharply. In the German market, BMW climbed about 2.3%. Puma, SAP, Mercedes-Benz, Rheinmetall, Beiersdorf, Volkswagen, Adidas, MTU Aero Engines, Bayer and BASF gained 0.6 to 1.6%. Siemens Energy closed down nearly 4%. Deutsche Post and Munich RE both closed lower by about 1.8%. Henkel, Brenntag, Merck, HeidelbergCement, Siemens, Allianz, RWE and Siemens Healthineers also ended weak. In the French market, Airbus Group, Societe Generale, Pernod Ricard, Hermes International, Kering, Accor and Eurofins Scientific gained 1 to 2.2%. Edenred lost more than 3%. Teleperformance, ArcelorMittal, Legrand, Capgemini, BNP Paribas, Schneider Electric, Sanofi and Safran closed lower by 0.8 to 1.6%.