The European Central Bank (ECB) cut its key interest rate by 0.25% on April 17, 2025, marking its third reduction of the year, as global tariff tensions and economic stagnation in the euro zone—driven by industrial recession and weak consumption—prompted a shift toward less restrictive monetary policy, according to Reuters and CNBC reports from early 2025.
The European Central Bank also cut interest rates on March 12, 2025, lowering the deposit facility rate to 2.50%, main refinancing operations to 2.65%, and marginal lending facility to 2.90%, aiming to stimulate borrowing and economic growth amid subdued lending (ECB, 2025).
