'Incredulous' at Trump's trade war, the European Central Bank continues to lower interest rates

'Incredulous' at Trump's trade war, the European Central Bank continues to lower interest rates

Interest rates were reduced from 2.5% to 2.25% on Thursday, marking the seventh consecutive cut. The ECB believes that the tariffs will be 'negative' for European growth.

European Central Bank Cuts Rates as Trade Tensions Weigh on Outlook, Inflation Eases

The European Central Bank (ECB) has cut interest rates by 25 basis points, citing easing inflation and rising downside risks to economic growth, including escalating global trade tensions and weakening business confidence across the euro area. The decision, announced on April 17, lowers the ECB’s deposit facility rate to 2.25 percent, bringing it to the upper end of what policymakers have previously described as a “neutral” range—one that neithe…

European Central Bank reduced interest rates in response to global trade tensions. Photo: European Parliament The European Central Bank (ECB) announced a reduction in its main interest rate from 2.5% to 2.25 %, in an attempt to mitigate the economic consequences of growing global uncertainty, especially as a result of tariffs imposed by US President Donald Trump. This cut takes place in a context of trade war, whose tensions have generated conce…

Core inflation cools as trade war ignites

Trump’s trade war could cause households to pay attention to inflation again, even as underlying price pressures trend downwards

The European Central Bank is ready to ease monetary policy again if the indicated trade tensions hit the region's fragile economy more significantly.

The European Central Bank will ease its monetary policy further if trade tensions hit its fragile economy, analysts polled by Reuters said on Thursday. The ECB cut its key interest rate by 25 basis points to 2.25 percent for the seventh time this cycle to support an already weak euro zone economy that is facing the negative impact of U.S. President Donald Trump’s tariffs. Escalating trade tensions are likely to slow economic growth, ECB Preside…