ECB cuts rates for third time this year as Europe braces for Trump tariffs

The European Central Bank (ECB) cut its main interest rate to 2.25% due to concerns over slowing growth and increased trade tensions, particularly US tariffs on EU goods. ECB President Christine Lagarde warned that these tariffs could lower euro area growth by affecting exports, investment, and consumption. Inflation indicators were falling, allowing for the rate reduction. Markets expect further cuts this year, possibly down to 1.5%. Global central banks are also considering rate cuts due to trade tensions impacting economic growth.