NEWS
NEWS

The ECB lowers interest rates again despite the outbreak of Donald Trump's trade war

Updated

It is the fifth consecutive cut, and the price of money stands at 2.5%

ECB President, Christine Lagarde.
ECB President, Christine Lagarde.AP

The European Central Bank (ECB) meets market expectations and lowers interest rates by 25 basis points to 2.5%. This was reported by the regulatory body on Thursday after the meeting of its Governing Council.

This decision is a response to the "disinflation process," which the institution states is "continuing to progress."

Bank experts now believe that overall inflation will average 2.3% in 2025, 1.9% in 2026, and 2.0% in 2027.

However, the current context, mainly marked by the trade war initiated by U.S. President Donald Trump following the announcement of 25% tariffs on EU products, could lead to an inflation spike.