ECB Cuts to 2.50%; Cites Germany Recession and Tariff Risks

The ECB cut its deposit facility rate by 25 basis points to 2.50%, its sixth consecutive cut. The statement highlighted tariff-related downside risks to eurozone economic growth, with Germany officially in technical recession. ECB staff projections were revised down for 2025 GDP growth. President Lagarde warned that trade policy uncertainty was a significant headwind for European exports.