“The outlook for growth has deteriorated owing to rising trade tensions,” the ECB said Thursday in a statement. “Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions. These factors may further weigh on the economic outlook.”
The European Central Bank lowered interest rates for the seventh time since last June as global trade tensions threaten to derail the region’s economic recovery.
The deposit rate was decreased by a quarter-point to 2.25%, as predicted by almost all analysts polled by Bloomberg. Officials dropped the word “restrictive” from their statement in relation to the monetary-policy stance but stressed the headwinds Europe faces.
