ECB cuts deposit rate again as Europe heads into uncertain future
ECB cuts key interest rate to 2.5% amid 'risk, uncertainty'
The rate cut comes as the ECB seeks to alleviate pressure on consumers and businesses amid sluggish economic growth in Europe, and the threat of trade tensions with the US.
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ECB Heads for Showdown Over Whether to Cut Again in April
The European Central Bank's payments crash last week meant salaries and welfare funds were delayed for thousands of people. It could have been much worse.
A tectonic shift in German fiscal policy has compounded uncertainty for traders trying to bet on how fast the European Central Bank will cut rates for the rest of the year, with a change to the bank's guidance on Thursday reinforcing that.
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"I am very concerned about the European economy," European Central Bank policymaker Mário Centeno told CNBC's "Squawk Box Europe" on Friday. The ECB on Thursday took down its gross domestic product expectations for the euro area.
The ECB cut rates by a quarter point, aiming to buffer an economy threatened by tariffs and a sudden need to ramp up military spending.
The combination of continued growth concerns in the US and the fiscal/defense initiatives in Europe saw the dollar fall every day last week.
EUROPEAN shares pared declines to close flat on Thursday, after the European Central Bank’s interest rate cut boosted bank stocks, offsetting pressures from rising long-term bond yields. Read more at The Business Times.
European markets are turning more optimistic on the structural economic outlook whilst in the US the mood remains more downbeat
FRANKFURT (Reuters) -Banks struggled to process payments on Friday after an unprecedented day-long breakdown in the European Central Bank's machine underpinning trillions of euros of money movements.
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