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ECB Cuts R...
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Bloomberg Quint

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ECB Cuts Rates Again To Help Economy Withstand Tariff Stress

  • The European Central Bank (ECB) has cut interest rates for the eighth time in a year to address the impact of inflation falling below 2% and the economic effects of US tariffs.
  • The ECB's decision to lower the deposit rate to 2% was in line with analysts' predictions and comes amidst concerns about trade policies affecting business investments and exports in the short term.
  • New quarterly projections from the ECB show inflation below target at 1.6% in 2026, and expectations of slightly slower economic expansion next year.
  • The ECB's move has led to gains in European government bonds, lowered German 10-year yields, and increased market expectations of further rate cuts this year.

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