Overview

• The ECB announced its seventh rate cut since June 2024, lowering its key deposit rate by 25 basis points to 2.25%.
• Effective April 23, the ECB will reduce its three main rates to 2.25% (deposit), 2.40% (refinancing), and 2.65% (marginal lending).
• The decision was prompted by deteriorating eurozone growth forecasts following heightened US trade tariffs imposed earlier in April.
• The ECB emphasized that the disinflation process is progressing as planned, with inflation nearing its 2% medium-term target.
• The central bank highlighted heightened uncertainty and potential negative impacts on household and business confidence due to trade tensions.