From Yahoo Finance: 2025-06-05 10:54:00

The European Central Bank cuts interest rates to 2% to boost economic growth in the eurozone, facing challenges from Trump’s trade wars. Growth has slowed, prompting the move to lower borrowing costs. The ECB warns of uncertainty due to global economic conditions and the impact of US tariffs on growth.

US President Trump criticizes the Federal Reserve chair for maintaining high interest rates, urging further cuts. The ECB reduces its main deposit rate to 2% as inflation falls below target. Lagarde expresses confidence in the economy but warns of uncertainty and potential further rate cuts.

Deutsche Bank’s chief economist suggests more rate cuts may be necessary if the trade war negatively affects Eurozone exporters. Inflation is forecast to fluctuate in the coming years. Lagarde’s tenure as ECB president faces scrutiny amid rumors of her potential replacement, which she denies.

Read more: ECB cuts interest rates to 2% in effort to bolster flagging eurozone growth