EU cuts interest rates again down to 2.5%

The European Central Bank (ECB) on 6th March 2025 reduced its interest rates to 2.5%, marking the sixth reduction since June 2024

The bank stuck to its plan in the face of economic challenges, including threats of U.S. tariffs and plans to boost European military spending.

This move reflects a shift in focus from combating inflation to supporting economic growth in the Eurozone.

Inflation has eased to 2.4% in February, and the ECB expects it to stabilise around its 2% target.

Economic growth forecasts for 2025 and 2026 have been lowered to 0.9% and 1.2%, respectively.