European Central Bank cuts interest rates as Lagarde warns trade tensions will dampen growth 

The ECB earlier estimated that growth across the eurozone could fall by 0.5% if tariffs are imposed, erasing about half the bloc's expected expansion

The ECB's deposit rate now stands at 2.25% following the regulator's latest reduction of 0.25%. (Photo by Daniel ROLAND / AFP) (Photo by DANIEL ROLAND/AFP via Getty Images)

The European Central Bank (ECB) has cut interest rates for the seventh time since summer 2024 as policymakers react to the threat of major levies being placed on European exports by US President Donald Trump. 

Following a unanimous decision by the Governing Council, the ECB's deposit rate now stands at 2.25% following the regulator's latest reduction of 0.25%.