Overview

• The ECB lowered its deposit rate by 25 basis points to 2.25%, marking its seventh consecutive cut since June 2024.
• US President Donald Trump's aggressive tariff policies have intensified economic uncertainty, influencing the ECB's decision to ease monetary policy further.
• Eurozone inflation slowed to 2.2% in March, nearing the ECB's target of 2%, which provided room for additional rate cuts.
• Financial markets had anticipated the move, with a 95% probability of a rate reduction already priced in prior to the announcement.
• The ECB reiterated its data-driven, meeting-by-meeting approach to monetary policy, signaling potential for further adjustments depending on evolving economic conditions.