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US trade tariffs have an inflationary effect, but also lower demand and growth — leading the ECB to conclude a rate cut is in order (Photo: World Economic Forum)

ECB cuts rate to 2.25% as trade tension bites

The European Central Bank has cut its main interest rate to 2.25 percent, down from 2.5 percent, in a bid to inject life into the flagging European economy.

It’s the seventh cut since last summer and comes as the EU finds itself caught in the crossfire of a trade war with the United States.

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

US trade tariffs have an inflationary effect, but also lower demand and growth — leading the ECB to conclude a rate cut is in order (Photo: World Economic Forum)

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

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