ECB’s Bold Moves: Steering the Eurozone Through Turbulent Times

The European Central Bank has cut interest rates by 25 basis points amid heightened trade tensions and economic uncertainty. Traders are now betting on further rate cuts to stimulate the eurozone economy, which is struggling due to U.S. tariffs and a volatile global market environment.

The European Central Bank (ECB) sent a strong signal to traders on Thursday, suggesting readiness to implement further interest rate cuts amid escalating trade tensions and economic uncertainty.

The ECB's decision to reduce rates by 25 basis points to 2.25% marks the seventh cut this cycle, reinforcing the eurozone's battles against challenges posed by U.S. tariffs and market instability.

Traders responded sharply, with government bond yields dropping and the euro weakening. ECB Chief Christine Lagarde emphasized the central bank's willingness to act decisively to protect the economy, despite some internal hesitation.

(With inputs from agencies.)