ECB Cuts Rates as Inflation Nears Target Amid Trade War Fears

Source: ft.com

The European Central Bank lowered borrowing costs for the eighth time in a year as eurozone inflation dropped near its target. Policymakers, led by President Christine Lagarde, signalled more cuts ahead but stressed caution due to global uncertainties. This move reflects cooling inflation after years of high prices, but new threats like US trade policies loom large. Readers should care because lower rates could boost spending and house prices, yet trade tensions might reverse those gains.