ECB cuts rates again but pause seen ahead

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Frankfurt: European Central Bank (ECB) President Christine Legard said that the ECB is in a “good place” to deal with global uncertainty because it has once again reduced interest rates on Thursday, with expectations that it can soon stop a long ease.

The ECB reduced its key deposit rate by 2.0 %, as widely expected, as it is seventh and eighth after June last year when it began to reduce the debt costs.

It also reduced its inflation prediction, with this year’s indicators expected to target the central bank’s two percent target this year, as US President Donald Trump’s tariffs are under pressure at the bulletz prices.

Since inflation has increased since after inflation, the ECB has focused on dialing loan costs to remove pressure on 20 countries using the euro. Trump’s prices have further increased the uncertainty, with Europe firmly in its cross -hirs, the continent’s exporters have been subjected to fear of heavy hit.

But Lagarde hit a measured tone. When the US trade war was causing problems, it noted the future promotion in the future with maximum infrastructure and defense spending projects in the euro zone economy, as well as maximum infrastructure and defense spending projects.

He declined to comment directly about whether the ECB stops his deductions at the next meeting in July, as some people expect, but he repeatedly emphasized that the central bank is in a “good place”.

“We are in a good position to navigate uncertainty, which will come out,” he said.

The ECB did not change its growth forecast to 0.9 % for 2025, and also said that inflation is now around two percent of its target-falling the first language that it was “on track”. In May, the euro zone inflation came at 1.9 percent.

‘Summer pause’

ING Bank analyst Carten Berzesky said Lagard’s comments have indicated “summer breaks” to reduce the rate. “It will take a little longer to understand whether the current dishonesty risks are merely once or they indicate a wider trend,” he said.

But he added that he expected another deduction from the central bank this year, possibly in September. The ECB deduction is unlike the US Federal Reserve, which recently maintained the rate among the fears that Trump’s levy could prevent inflation in the world’s highest economy.

Legarde also knocked on the proposals, after which she could reduce her term of employment, which led to her discussing the Helme of the World Economic Forum.

Trump tariff bullets

Trump, who argues that his prices will bring back manufacturing jobs, has already inflicted several waves to the European Union.

This block currently faces high duties on 10 % “baseline” tariff as well as specific sectors. It has stopped even more rates to allow the European Union and other trade partners to negotiate, but they continue to launch fresh sloses that are pushing the world forward.

This week, he doubled the tariffs on aluminum and steel by 25 to 50 percent, and last month the European Union was threatened with increasing talks if it did not discuss the high -speed deal. Trump’s prices are expected to put pressure down the euro zone consumer prices, and the inflauded inflamed the inflamed vision was “more uncertain than usual.”

This is due to tariff -affected China due to redirecting cheap manufactured goods to Europe, the recent strength of the euro and potentially reinforcing low energy prices.

There are some factors that make it uncertain. These include flexibility in the Eurozone economy at the beginning of the year and potentially inflation costs planned by the new German government.