The European Central Bank (ECB) has decided to lower its three main interest rates by 25 basis points in order to stabilize the economy and curb inflation. This is stated in the regulator’s announcement. Thus, starting from April 23, the deposit rate will be 2.25%, the main refinancing operations rate will decrease to 2.4%, and the marginal lending rate will drop to 2.65%.
This is reported by Business • Media
According to the regulator, the disinflation process in the euro area is proceeding appropriately. Inflation in March 2025, according to Eurostat, increased by 2.2% compared to the same month last year. This indicates a slowdown in the rate of inflation growth compared to February, when the figure was +2.3% year-on-year. “Risks to the eurozone economy have increased due to rising trade tensions in the global market,” the regulator’s announcement emphasizes.
Impact of Trade Tensions on the Eurozone Economy
The ECB notes that while the euro area economy shows some resilience to global shocks, growth prospects are deteriorating due to rising trade tensions.
“Increased uncertainty is likely to reduce confidence among households and businesses, and the negative and volatile market reactions to trade conflicts could significantly complicate financing conditions,” a quote from the ECB’s announcement.
The main regulator emphasizes that these factors could further worsen the economic outlook for the eurozone. At the same time, the euro area economy is gradually adapting to global changes, including rising prices and external challenges.