ECB cuts rate to 2.25% amid trade tensions, signaling potential for further rate cuts

From Quiver Quantitative: 2025-04-17 22:58:00

The European Central Bank cut its deposit rate to 2.25% in response to trade tensions, removing “restrictive” language from policy statement. Lagarde warned of downside risks to growth due to heightened US tariff threats, with markets expecting three more rate cuts this year. German bond yields fell and the euro weakened in response to the news. Inflation is easing towards the ECB’s 2% target, prompting economists to anticipate further cuts at the June meeting. Major banks predict deeper cuts to address ongoing risks, emphasizing the need for data-driven policymaking in the face of global uncertainty.



Read more at Quiver Quantitative: ECB’s Seventh Rate Cut Signals Deeper Easing Amid Trade Uncertainty