The European Central Bank has signalled it is nearing the end of its rate-cutting cycle as it lowered borrowing costs by a quarter point to 2 per cent in response to uncertainty over the impact of Donald Trump’s trade war.
Following the widely expected cut, ECB president Christine Lagarde said the central bank had “nearly concluded” the latest monetary policy cycle, which has led to rate-setters halving borrowing costs from a peak of 4 per cent since June 2024.
The Eurozone would be in a “good position to navigate the uncertain conditions” facing the bloc, she added in an apparent reference to trade tensions between the US and EU.
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