ECB ready to cut rates again as Trump tariffs shake eurozone

European Central Bank policymakers look increasingly likely to cut interest rates again on Thursday, with US President Donald Trump's stop-start tariff announcements sowing concern in the eurozone.
The uncertainty around Trump's next move, and the negative impact it could have on growth within the single currency bloc, has intensified calls for the ECB to ease borrowing costs further.

Worries over rising prices have faded into the background, as once sky-high inflation rates have drifted back down towards the ECB's two-percent target.

The central bank has made six quarter-point cuts since June last year as inflation has fallen, bringing its benchmark deposit rate down to 2.5 percent from four percent.

After such a long cutting streak, the central bank "seemed set for a pause" after its last meeting in March, ING bank analyst Carsten Brzeski said.

But the picture has changed significantly since Trump's announcement of a new round of swingeing tariffs, which he referred to as "Liberation Day".

Trump imposed 10 percent tariffs on all imports into the United States.