The European Central Bank cut interest rates by 0.25% on Thursday, though an uncertain economic backdrop is sowing divisions over the correct path for future borrowing costs. It was the ECB's sixth cut to rates since June last year,

The European Central Bank (ECB) on Thursday lowered its three key interest rates by 25 basis points, meeting market forecasts. This marked the fifth consecutive rate cut since the ECB initiated its easing cycle last June. The key deposit rate now stands at 2.50%, its lowest level since early 2023.

The ECB cut interest rates by 25 basis points and updated the language in its decision to say monetary policy was becoming “meaningfully less restrictive.”

The European Central Bank on Thursday cut interest rates by 25 basis points, with the bloc's growth prospects in focus following tariff threats from U.S. President Donald Trump. This brings the ECB's deposit facility rate, its key rate, to 2.5% — a move that markets had widely priced in before the announcement.

Inflation in Europe eased to 2.4% in February, supporting the case for another interest rate cut from the European Central Bank but leaving open how far the central bank will go in lowering borrowing costs.