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Europe's central bank expected to lower interest rates as Trump's trade war threatens growth
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The European Central Bank, right, is pictured in Frankfurt, Germany, Wednesday, June 4, 2025. - photo by AP Photo/Michael Probst
FRANKFURT, Germany (AP) — Lower inflation and concern that U.S. President Donald Trump's trade war will slow already modest growth have cleared the way for the European Central Bank to cut interest rates at Thursday's policy meeting, a step that would lower borrowing costs for consumers and businesses and promote economic activity. With a cut widely expected by market analysts, a key question is how low the bank will go, given uncertainty about the impact of U.S. trade policy on Europe’s export-dependent economy. Bank President Christine Lagarde will face questions about the bank’s outlook for coming meetings at her post-decision news conference.