ECB Set to Cut Interest Rates Amid Economic Challenges

The European Central Bank is poised to cut interest rates and may signal further easing to combat slow economic growth despite inflation concerns. With the eurozone facing an industrial recession and weak consumption, ECB policymakers may unanimously agree on a rate cut. Trade tensions with the United States could also impact decisions.

The European Central Bank is expected to cut interest rates on Thursday, keeping options open for further easing as economic growth concerns outweigh inflation worries.

Having previously lowered rates four times last year, the ECB is likely to vote unanimously for a 25 basis point cut, potentially reducing the deposit rate to 2.75%, aiming to aid the struggling eurozone economy.

With U.S. trade policies adding volatility, ECB President Christine Lagarde is anticipated to highlight policy direction, underscoring unresolved challenges like trade tensions potentially impacting growth.

(With inputs from agencies.)