ECB cuts rates, leaves room for more easing

Markets expect central bank to make 2 or 3 more cuts this year

20250130N Lagarde

ECB President Christine Lagarde warned that trade friction "could weigh on euro-area growth by dampening exports and weakening the global economy." © Reuters

FRANKFURT (Reuters) -- The European Central Bank cut interest rates on Thursday and kept the door open to further policy easing as concerns over lackluster economic growth supersede worries about persistent inflation.

It was the fifth ECB rate cut since June and markets expect two or three more this year, driven by arguments that the biggest inflation surge in generations is nearly defeated and the flagging economy needs relief.

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