Thu, 06 Mar 2025

Thu, 06 Mar 2025 European Central Bank cuts interest rates again

The bank cuts rates to 2.5% but faces pressures from threatened US tariffs and plans to boost military funding.

* ECB cuts interest rate to 2.5% from 2.75%, the sixth cut in nine months
* Interest rate reduction aims to boost eurozone economic growth, but forecasts for growth reduced again
* German government's plan to increase military and infrastructure spending has caused a sell-off of bonds, pushing borrowing costs up by biggest daily amount since May 1997
* UK borrowing costs have also risen due to concerns about inflation and interest rates not coming down quickly enough
* ECB predicts eurozone growth will be just 0.9% in 2025, slightly above last year's pace of 0.7%
* Eurozone economy faces challenges from US tariffs and European military spending plans
* World Bank expects global growth to slow to 2.4% in 2024 due to concerns over interest rates and Middle East tensions
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