ECB cuts interest rates to 2% in effort to boost flagging eurozone growth

The European Central Bank (ECB) cut its main deposit interest rate to 2%, marking its eighth quarter-point cut in a year, in an effort to stimulate flagging economic growth across the eurozone. The bloc is reeling from the impact of Donald Trump’s trade wars, and the rate cut comes as eurozone inflation fell below the central bank’s 2% target. The ECB noted that while US tariffs would hit growth, increased government spending on defense and infrastructure would provide some support.

1. 1 Last September: Eurozone inflation fell to 1.9%, below the ECB's 2% target for the first time since then.
2. 2 Last month: The Bank of England cut interest rates to 4.25%.
3. 3 Tuesday: Donald Trump commented on interest rates, urging the Fed to lower rates.
4. 4 Recently: The European Central Bank cut its main deposit rate from 2.25% to 2%, marking its eighth quarter-point cut in a year.

• Lower borrowing costs across the eurozone
• Potential boost to economic growth in the eurozone
• Impact of US tariffs on business investment and exports
• Increased government investment in defense and infrastructure to support growth
• Comparison of monetary policy with other major central banks (Bank of England, Federal Reserve)