The European Central Bank (ECB) cut the interest rates at 25 PBS at its meeting on April 17. This is the seventh time since June 2025 that the Central Bank has reduced rates. Consequently, interest rates in the ease of deposit, the main refinancing operations and the ease of marginal credit will be reduced to 2.25%, 2.40% and 2.65% respectively, with effect as of April 23, the FX analysts of UOB Group, quek being Leang and Peter Chia.
Tariffs will impact the growth and prices of the region
“The European Central Bank (ECB), on Thursday (April 17), reduced interest rates for the seventh time since June 2024. With a reduction of 25 pbs, interest rates in the ease of deposit, the main refinancing operations and the facility of marginal credit will be 2.25%, 2.40% and 2.65% respectively.”
“The tariff developments in recent weeks have been the focus. Therefore, it was not surprising that the ECB pointed out ‘an exceptional uncertainty’ in the midst of the current political context. The impact for the European economy will depend on the real tariff rate that the US stable and the EU response.”
“Assuming an impact on economic growth from a weaker US demand for European exports, we now predict a growth of the euro zone of 0.5% in 2025 and 1.0% in 2026, below 0.9% and 1.2%, respectively. Our inflation projections are now located at 2.0% in 2025 and 1.7% in 2026, below 2.2% and 1.9%, 1.9% and 1.9%, 1.9% and 1.9%. respectively.
Source: Fx Street
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