ECB cuts rates, promises agility in face of trade war uncertainty

Central bank tries to prop up struggling eurozone economy

20250417N ECB

"The economic outlook is clouded by exceptional uncertainty," European Central Bank President Christine Lagarde told a news conference on April 17. © Reuters

FRANKFURT (Reuters) -- The European Central Bank cut interest rates for the seventh time in a year on Thursday, looking to prop up a struggling eurozone economy that is facing further pressure from U.S. President Donald Trump's trade tariffs.

The ECB has taken borrowing costs to their lowest level since late 2022 as the sharp post-pandemic inflation spike has eased, and the fast-moving changes to trade policies bolster the case for further concern.

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