ECB Cuts Rates Again: What Investors Need to Know After April 2025 Decision

On April 17, 2025 the European Central Bank slashed its benchmark deposit rate by 25 basis points to 2.25%, marking its seventh reduction over the past year as it battles a cooling eurozone economy :contentReference[oaicite:0]{index=0}. ECB President Christine Lagarde emphasised that this unanimous move aims to counteract the negative demand shock stemming from escalating U.S. tariffs, which have dented growth and export prospects across the region :contentReference[oaicite:1]{index=1}.

Lagarde also warned that falling global energy prices and a stronger euro could continue to weigh on inflation, underlining the tightrope the ECB must walk to sustain price stability :contentReference[oaicite:2]{index=2}. Looking ahead, she signalled that future rate decisions will hinge on evolving trade tensions and incoming economic data. Explore our guide on inflation outlook for deeper context.

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