The European Central Bank (ECB) announced a 25-basis-point interest rate cut on Thursday, marking its first adjustment in over a year as inflation trends toward its 2% target. The move aims to stimulate economic activity amid rising global trade uncertainties and a weakening growth outlook for the eurozone.
In a statement, the ECB acknowledged the region’s “resilience against global shocks” but cautioned that escalating trade tensions and external pressures have clouded economic prospects. Central bank officials emphasized that the decision reflects confidence in inflation stabilization, with current projections aligning with their medium-term goals.
The rate cut underscores efforts to balance economic support with market stability, drawing attention from investors and policymakers ahead of anticipated monetary updates from other major economies.
