The European Central Bank cut interest rates by a quarter-point Thursday, responding to signs of deteriorating activity and weakening inflation despite bond-market turmoil over plans for a splurge of spending.

The European Central Bank cut interest rates again on Thursday but warned of "phenomenal uncertainty" including the risk that trade wars and more defence spending could fuel inflation, raising the prospect of a pause in its policy easing next month.

There’s no direct mention of the momentous geopolitical events of recent days. But the Governing Council says that “especially in current conditions of rising uncertainty, it will follow a data-dependent and meeting-by-meeting approach.”