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Bank cuts rates again
The Gazette
|April 18, 2025
THE European Central Bank has cut interest rates for the seventh time in a row to counter worries about economic growth fuelled by President Donald Trump's tariff onslaught.
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The bank said in a statement that "the outlook for growth has deteriorated due to rising trade tensions".
It cited "exceptional uncertainty" about the future economic situation, saying future rate decisions would be taken on a meeting by meeting basis.
The bank's move should support economic activity in the 20 countries that use the euro currency by making credit more affordable for consumers and businesses.
The bank's rate-setting council decided at a meeting in Frankfurt to lower its benchmark rate by a quarter percentage point to 2.25%.
The bank has been steadily cutting rates after raising them sharply to combat an outbreak of inflation from 2022 to 2023.
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