ECB cuts rates to 2.25% amid Trump trade war

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The European Central Bank has cut its benchmark interest rates at a fourth point at 2.25 percent as it is ready for economic collapse from the trade war driven by US President Donald Trump.

Thursday’s cut, which brings the cost to the orrow of the coin block in more than two years, is widely expected after Trump’s snake announcement Tariff On April 2 on most trading partners in the United States.

Before the decision, Compared to the US President The ECB’s Rate record with the US Federal Reserve, which stuck the rates at its last meeting in March.

Trump says Jay Powell, a chair of Fed, who warned of the impact of tariffs on US growth and inflation on Wednesday, was “always too late and wrong” and its “finishing may not come quite quickly!”

The ECBThe seventh reduction of this week has been cut this week since its deposit rate began last June.

Before the decision, traders are expecting at least two more quarter-cents cut at the end of this year according to the level of the market.

Trump did a partial U-turn last week, delaying its entire “mutual tariff” in EU products for 90 days, at this time 10 percent rate would apply. However, top central bankers say his security policies can still be negative economic shock for the Euro region.

ECB is already facing slow growth and cool prices pressure. In March, the central bank has cut the Eurozone to 0.9 percent of its 2025 growth – it has reduced its sixth.

Inflation was reduced to 2.2 percent last month – 2 percent of the ECB is slightly compared to the target – since the service prices have risen slowly for almost three years.

Economists say that this month’s oil prices decrease, the recent growth in the euro against the dollar and the potential enthusiasm for Eurozon’s imports may further reduce inflation. All three development are seen as the consequences of Trump’s trade policy at least in some parts.

However, in Germany and Eurozone elsewhere in the Eurozone, the debt-based expenditure increases can prove inflation pressure.