The European Central Bank cut interest rates for the eighth time in a year on Thursday, acknowledging inflation was under control and turning more pessimistic about economic prospects amid risks of a trade war with the United States.

The ECB just dropped its main deposit rate again—by 25 basis points, this time down to 2%, from the 4% high it hit back in mid-2023. This is the eighth

Looking further forward, the ECB is forecasting an inflation rate of just 1.6 per cent for 2026, meaning it would undershoot its medium-term inflation target of 2 per cent.