European Central Bank's Tactical Rate Cut to Avert Economic Slowdown

The European Central Bank reduced interest rates for the seventh time to mitigate economic concerns exacerbated by U.S. tariffs. The decision aims to bolster the eurozone's growth by making borrowing more affordable. The move follows previous rate hikes to tackle inflation, now overshadowed by growth uncertainties.

The European Central Bank trimmed interest rates again on Thursday, marking the seventh consecutive reduction to combat growing economic concerns propelled by President Trump's tariff policies.

Stating a tougher growth outlook due to escalating trade tensions, the bank expressed 'exceptional uncertainty' regarding the economy's future trajectory, with rate decisions now being assessed at every meeting.

This strategic move is designed to invigorate economic activity across the euro-using nations by easing the cost of credit for both consumers and enterprises.

(With inputs from agencies.)