ECB cuts interest rates to 2% in effort to bolster flagging eurozone growth

The European Central Bank has reduced interest rates to 2 % in an attempt to increase economic growth throughout the euro.

The European Central Bank, which reduced the eighth -quarter points in one year, said that the mass of the currency of 20 members needs a decrease in the cost of borrowing because it was damaged by Donald Trump’s wars.

Economic growth has slowed through the eurozone, especially in France, Germany and Italy, while expectations for the next year are weak, according to the expectations of the European Union.

The move reduces the cost of borrowing to less than half of the UK level, as the Bank of England reduced interest rates last month to 4.25 %, and the level set in the United States by the Federal Reserve ranges between 4.25 % and 4.5 %.

The US President wandered against the President of the Federal Reserve, Jerome Powell, and what he describes as his policy of maintaining high interest rates.

Related to: The bank’s ruler says that interest rates in the UK are unconfirmed due to Trump’s policies

On Tuesday, Trump noticed the repeated cuts in interest rates in Europe, and said: “The ADP number !!! Referring to the weak salary numbers for the private sector provided by the automatic data processing of American data data.

The European Central Bank reduced the main deposit rate from 2.25 % to 2 % after inflation decreased across the euro area to 1.9 % last month, less than the central bank’s goal by 2 % for the first time since last September.

The European Central Bank said that the US definitions will grow, but the additional government spending on the defense will fill some gap.

She said: “While it is expected that the uncertainty surrounding commercial policies will affect investment of business and exports, especially in the short term, the high government investment in defense and infrastructure will increase increasingly growth in the medium term.”

However, the President of the European Central Bank, Christine Lagarde, said: “A strong labor market, a real high income, strong public budgets for the private sector and easier financing conditions … all consumers and companies must help the repercussions of the volatile global environment.”

She added: “Are we confident? [about the outlook]? I think this will be a bit far. But we are in a good position at the present time. “

Lagarde said that the vote to reduce prices was “almost unanimously”, after only one member of the Governing Council voted to keep the rates.

The head of the European Central Bank said it was difficult to know whether the interest rates would need to decline during the “great uncertainty” period in the global economy.

She warned that although manufacturing might be strengthened, according to modern data, the local services sector locally was slowing down.