“Inflation is currently at around the Governing Council’s 2% medium-term target,” the ECB said in a statement. “While the uncertainty surrounding trade policies is expected to weigh on business investment and exports, especially in the short term, rising government investment in defence and infrastructure will increasingly support growth over the medium term.”
The European Central Bank lowered interest rates for the eighth time in a year after inflation dipped beneath 2% and the economy suffered repeated blows from US tariffs.
The deposit rate was cut by a quarter-point to 2% — as predicted by all analysts in a Bloomberg survey.
