Europe slashes interest rates in wake of trade war

Eurozone drops official interest rates by quarter-percent

Lola Evans
17 Apr 2025, 19:36 GMT+10

Europe slashes interest rates in wake of trade war

The ECB, as expected, reduced the official rate by 25 basis points, from 2.50 percent to 2.25 percent.
"The economic outlook is clouded by exceptional uncertainty. Euro area exporters face new barriers to trade, although their scope remains unclear."
"Unemployment fell to 6.1 per cent in February, its lowest level since the launch of the euro."

BRUSSELS, Belgium - The Europesn Central Bank has slashed official interest rates in the wake of the financial crisis triggered by U.S. trade tariffs.

The ECB, as expected, reduced the official rate by 25 basis points, from 2.50 percent to 2.25 percent.

"The economic outlook is clouded by exceptional uncertainty. Euro area exporters face new barriers to trade, although their scope remains unclear," Christine Lagarde, the European Central Bank President, said at a press conference following a meeting of the bank's Governing Council.

"Disruptions to international commerce, financial market tensions and geopolitical uncertainty are weighing on business investment. As consumers become more cautious about the future, they may hold back from spending as well."

"At the same time, the euro area economy has been building up some resilience against the global shocks. The economy is likely to have grown in the first quarter of the year, and manufacturing has shown signs of stabilisation," Lagarde said.

"Unemployment fell to 6.1 per cent in February, its lowest level since the launch of the euro. A strong labour market, higher real incomes and the impact of our monetary policy should underpin spending."

"The important policy initiatives that have been launched at the national and EU levels to increase defence spending and infrastructure investment can be expected to bolster manufacturing, which is also reflected in recent surveys," the ECB president said.

The euro weakened to 1.1359 shortly after Lagarde's press conference, in late afternoon trading Thursday, after having hit a high of 1.1409 earlier in the day.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Birmingham News.

More Information

null in null

Business

Section

Wall Street ends volatile day higher

U.S. stocks finish in front Thursday despite volatility

NEW YORK, New York - U.S. stock markets see-sawed Thursday as the judicial system became a key player in Donald Trump's trade wars....

French farmers jam Paris roads in push for eased regulations

French farmers bring tractors to Paris to press for ease in rules

PARIS, France: French farmers brought traffic to a crawl around Paris and gathered outside the National Assembly on May 26, using their...

Amid trade tensions, France, Vietnam ink deals worth $10 billion

France, Vietnam sign deals worth $10 billion as Macron visits Hanoi

HANOI, Vietnam: Amid shifting global trade dynamics and growing concerns over U.S. tariffs, France and Vietnam have signed more than...

Wall Street has relapse Wednesday, after Tuesday's heady gains

U.S. stocks slide as 30-year bond yields top 5 percent

NEW YORK, New York - U.S. stocks were weaker Wednesday, following Tuesday's heady gains when the Dow Jones jumped 741 points. Bond...

China’s GAC launches in Brazil as EV demand accelerates

China's GAC enters Brazil EV market, plans factory by 2026

SAO PAULO, Brazil: Amid a surge in electric vehicle (EV) adoption and growing competition in Brazil, Chinese automaker GAC has officially...

McDonald’s to shut down CosMc’s drink spinoff after short run

McDonald's to close standalone beverage concept

CHICAGO, Illinois: McDonald's is closing its experimental beverage spinoff, CosMc's, less than two years after launching the standalone...

United Kingdom

Section

Eurozone drops official interest rates by quarter-percent

Watch latest videos

News RELEASES

Business

Wall Street ends volatile day higher

French farmers jam Paris roads in push for eased regulations

Amid trade tensions, France, Vietnam ink deals worth $10 billion

Wall Street has relapse Wednesday, after Tuesday's heady gains

China’s GAC launches in Brazil as EV demand accelerates

McDonald’s to shut down CosMc’s drink spinoff after short run

United Kingdom

"Really important that club get that right": Maguire issues warning to Manchester United about summer signings

Manchester United goalkeeper Onana doesn't feel "pressure" about replacing former club stalwart

Liverpool car crash suspect charged, due in court Friday

Rejected proposal to merge BRS into BJP: K Kavitha

Paresh Rawal, Arjun Rampal, Sonakshi Sinha starrer 'Nikita Roy' gets new release date

"This year was a difficult season for us": Manchester United's Harry Maguire

Movie Review

The Hills Have Eyes (1977) (4K UHD) [Blu-Ray]