ECB cuts rates for sixth time in face of economic upheaval

Reuters

Thu, Mar 6, 2025, 5:18 AM 1 min read

FRANKFURT (Reuters) - The European Central Bank chopped involvement rates for the sixth clip successful 9 months connected Thursday, sticking to its easing program successful the look of economical upheaval from an unfolding commercialized warfare and caller plans to boost Europe's subject spending.

With ostentation closing successful connected its 2% target, the cardinal slope for the euro portion lowered the complaint it pays connected slope deposits by 25 ground points to 2.5% a level it saw arsenic "meaningfully little restrictive".

"Monetary argumentation is becoming meaningfully little restrictive, arsenic the involvement complaint cuts are making caller borrowing little costly for firms and households and indebtedness maturation is picking up," the ECB said.

Thursday's chopped was apt the past casual determination for ECB policymakers, with immoderate determination from adjacent period onwards acceptable to beryllium taxable to a much heated statement arsenic ostentation worries linger.

Germany's determination this week to summation subject and infrastructure spending, which could stoke caller inflationary pressures, is apt to heighten those concerns.

On the flip-side, the euro portion system whitethorn instrumentality a deed if the United States follows done with plans to slap "reciprocal tariffs" connected each state that taxes U.S. imports.

ECB President Christine Lagarde is apt to beryllium asked astir these risks astatine a property league starting astatine 1345 GMT.

With Thursday's cut, the ECB besides lowered by 25 ground points the rates astatine which banks tin get astatine its play and regular auctions, to 2.65% and 2.90% respectively.

(Reporting By Francesco Canepa; Editing by Catherine Evans)