From Yahoo Finance: 2025-04-16 18:03:00

The European Central Bank cut interest rates for the seventh time in a year, citing U.S. tariffs as a major economic growth risk. More policy easing is expected in the future. Economic growth is expected to be dampened by trade tensions, affecting exports, investment, and consumption. The ECB’s deposit rate was cut to 2.25%.

The ECB warned that growth in the eurozone could drop by half a percentage point in the event of a 25% U.S. tariff on EU imports and retaliatory measures. The impact of a trade war on inflation could be offset by market volatility. Forecasts suggest two more rate cuts to 1.75% if current conditions persist.

Financial indicators suggest disinflationary pressures are mounting, with investment banks cutting inflation forecasts for the eurozone. The euro has strengthened against the dollar, energy prices have fallen, and growth is slowing. The ECB is monitoring developments closely and is prepared to take further action if necessary to support the economy.



Read more at Yahoo Finance: ECB cuts rates on weak growth, markets bet on more easing