ECB cuts rates again and warns trade war fears are hurting Europe’s economy

Quarter-point cut to deposit rate, to 2.5%, comes as Trump prepares to impose tariffs on EU exports to US

Business live – latest updates

The European Central Bank has cut interest rates across the 20-member eurozone for the second time this year, and warned that trade war fears are hurting Europe’s economy.

The Frankfurt-based rate setter cut its benchmark deposit rate by a quarter of a percentage point to 2.5%, in line with City economist expectations, as Trump prepared to impose 25% tariffs on all goods imported from the EU.

Topics

ECB cuts interest rate to 2.5%

Rate-setters shift tone, suggesting possible pause to reductions in borrowing costs
Financial Times - 1h
Reeves warns trade war will harm UK’s economy even if it avoids tariffs

Chancellor says growth and inflation will be hit by fallout from global friction
Financial Times - 1d
How fast will the ECB cut interest rates?

Market Questions is the FT’s guide to the week ahead
Financial Times - 4d
Morgan Stanley now expects the ECB to cut on Thursday and again in April

Morgan Stanley says it now expects the European Central Bank to cut interest rates in April as it, like the market, expects a rate cut at Thursday’s meeting.
MarketWatch - 2d
Social Security workers warn job cuts could hurt service for Americans

"We are already short-staffed as it is,"one Social Security Administration employee said of the agency's plans to slash its workforce.
CBS News - 5d
ECB faces risk of ‘sleepwalking’ into too many rate cuts, says top official

Rate-setters need to stand ready to pause further monetary easing, Belgian central bank governor says
Financial Times - Feb. 24
Euro zone inflation dips to 2.4% in February as ECB bets point to sixth rate cut

Economists surveyed by Reuters had been expecting inflation to ease to 2.3% in February.
CNBC - 3d
2-year Treasury yield slides as tariff worries linger, ECB cuts rates

Yields on U.S. government debt were mixed Thursday morning as the impact of tariffs weighed on broader sentiment, data showed weekly jobless claims receding from a three-month high, and the ...
MarketWatch - 1h

More from The Guardian

‘Watershed moment’: EU leaders close to agreeing €800bn defence plan

Show of unity over Ukraine may be hampered by Hungary’s Viktor Orbán but consensus has built on need for spending. Europe live – latest updates European leaders holding emergency talks in ...
The Guardian - 2h
Revealed: Israeli military creating ChatGPT-like tool using vast collection of Palestinian surveillance data

The powerful new AI model is designed to analyze intercepted communications – but experts say such systems can exacerbate biases and are prone to making mistakes. Israel’s military surveillance ...
The Guardian - 4h
Trump will delay US tariffs on many products from Canada and Mexico, official says

US president is said to be preparing to temporarily shelve tariffs on many goods from the two countries once again. Donald Trump is poised to pull back from his trade war with Canada and ...
The Guardian - 21m
Hamas says Trump’s threats encourage Israel to back out of Gaza ceasefire

Militant group accuses the US president of seeking to undermine deal with his ultimatum for release of hostages. Hamas has accused Donald Trump of seeking to undermine the shaky pause in ...
The Guardian - 5h
Fifa will consider expanding World Cup to 64 teams for 2030 tournament

Idea raised at Fifa council meeting on Wednesday Move would see more than a quarter of members qualify Fifa is to consider a proposal to expand the 2030 men’s World Cup to 64 teams, an ...
The Guardian - 50m