The European Central Bank (ECB) has reduced borrowing costs by a quarter point to 2% as it approaches the end of its rate-cutting cycle amid uncertainties from Donald Trump’s trade war. ECB President Christine Lagarde emphasized the bloc’s strong position to handle these uncertainties, while also discussing the potential for her to shorten her term for a role in the World Economic Forum. The ECB lowered its inflation outlook to 2% for this year, with expectations of returning to this target by 2027, despite ongoing trade policy uncertainties impacting business investments.
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