FRANKFURT: The European Central Bank cut interest rates again Thursday amid fears that US President Donald Trump’s stop-start tariff announcements could threaten growth across the eurozone.
ECB policymakers decided to lower rates by a quarter-point, marking the central bank’s sixth consecutive cut to borrowing costs for the single-currency area.
The decision brought the ECB’s benchmark deposit rate down to 2.25 percent, the lowest it has been since the beginning of 2023.
Rate-setters have slowly lowered borrowing costs in the eurozone as inflation has drifted back towards the ECB’s two-percent target.
But while inflation was headed in the right direction, “the outlook for growth has deteriorated owing to rising trade tensions”, the ECB said in a statement.
Comments