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ECB warns U.S.-China trade war could hurt Eurozone economy
Posted on February 6, 2025 |
The ECB can lower interest rates further as inflation slows.
The ECB reduced borrowing costs five times since June to help the eurozone economy.
Investors expect at least three more rate cuts this year to boost growth.
Energy prices and global trade tensions are making ECB decisions more difficult.
The ECB has not confirmed specific rate moves, including the expected March cut.
The ECB's plan still includes four rate cuts in 2025, with one already completed.
Inflation increased to 2.5% last month, but the ECB expects it to fall to 2% by summer.
The U.S. imposed a 10% tariff on China, and China’s response may impact European growth.