The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the United States and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

A 25 basis point cut to the ECB deposit facility rate is widely anticipated, marking the seventh cut in the current cycle. Click to read.

The euro edged higher after the European Central Bank cut interest rates but signaled it could move cautiously with further easing. The euro rose 0.3% to $1.082. It had been flat