Source: SFGate
“The European Central Bank has cut interest rates by another quarter percentage point, lowering credit costs for consumers and businesses to support an economy that is struggling to show solid growth. The rate decision Thursday, which was widely expected by economists, was overshadowed by concerns over a potential trade war with the U.S. and the impact of a surge in defense spending, two factors that could upend expectations for growth and inflation. The ECB’s rate-setting council lowered its benchmark deposit rate to 2.5%. That should provide support for growth by making it cheaper to borrow and buy a house or expand a factory. The rate was raised to a record 4% to combat inflation that reached 10.6% in Oct. 2022, but has been reducing it steadily since June. As inflation has fallen to an annual, 2.4% concern has shifted to weak growth prospects in the 20 countries that use the euro currency.” (03/06/25)
https://www.sfgate.com/news/world/article/trump-tariffs-and-potential-european-defense-20205888.php