US Edition
European Central Bank trims interest rates after inflation dips below target
- The European Central Bank cut its main interest rate to 2% on Thursday following a dip in inflation below its 2% target across the eurozone.
- The ECB's rate cut followed easing inflation, weakening growth, and uncertainties caused by U.S. Tariffs, including a 20% tariff on EU goods with threats to increase them.
- This cut marks the eighth rate reduction in 13 months as the ECB aims to support economic activity amid modest growth and trade tensions, with concerns about short-term inflation dips and medium-term pressures.
- Analysts expect the ECB to signal a cautious approach at President Lagarde's press conference, keeping all policy options open and monitoring risks from both domestic and international uncertainties.
- The rate reduction is expected to lower borrowing costs to stimulate growth, but further adjustments depend on trade negotiations progress and inflation developments into 2026 and 2027.
114 Articles
114 Articles
European Central Bank cuts rates again but pause seen ahead
FRANKFURT, Germany – President Christine Lagarde said the European Central Bank was in a “good place” to deal with global uncertainty as it cut interest rates again Thursday, fueling expectations it might soon hit pause after a lengthy easing cycle. The ECB cut its key deposit rate a quarter point to 2 percent, as widely expected, its seventh consecutive reduction and eighth since June last year when it began lowering borrowing costs. READ: New …
The ECB Is Leaving No Space for More Tax Cuts. If You Go Back Down It Will only Be After the Summer.
Christine Lagarde has reduced the interest rate to 2% and has made it very clear that the ECB is staying out of space to make many more discounts. It is not certain that the jury will fall back this year.
Daily Journal
ECB cuts rates again but pause seen ahead
President Christine Lagarde said the European Central Bank was in a "good place" to deal with global uncertainty as it cut interest rates again Thursday, fuelling expectations it might soon
The European Central Bank has been lowering key interest rates in the euro area for the eighth time since June 2024.
ECB cuts interest rates as EU likely to counter US tariffs
The ECB has now lowered borrowing costs eight times, or by 2 percentage points since last June, seeking to prop up a euro zone economy that was struggling even before erratic US economic and trade policies dealt it further blows.
It is the eighth time that interest rates have been cut in a year.
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