European Central Bank cuts interest rates again

This is the seventh cut in the ECB's key interest rate since June 2024. Experts had expected a reduction. US tariffs and geopolitical tensions had recently put the European economy under pressure. At the same time, inflation in the eurozone weakened to 2.2% in March.

Lower key interest rates improve financing conditions for companies and private households. They are intended to help the weak economy in the eurozone, which is threatened with setbacks as a result of Trump's tariff offensive. Concerns about the economy have grown - even though Trump has suspended the blanket tariffs of 20% on imports from the EU for 90 days.

However, the new US base tariff of ten percent and a 25 percent tariff on cars, steel and aluminum from Europe remain. ECB President Christine Lagarde recently warned of significant losses in economic growth in the eurozone if the trade dispute between the EU and the US escalates.