ECB considers cutting rates or taking a pause at next meeting — Bloomberg

European Central Bank (ECB) officials are considering cutting rates or holding them steady at the April 17 meeting, Bloomberg reports.

Lowering borrowing costs is likely to bring the deposit rate to 2.25%. However, the April decision may turn out to be more complicated, the news agency notes. While some central bank officials worry about a slowdown in the region's economy, others fear a possible acceleration in inflation caused by US President Donald Trump's new import tariffs.

Despite the risk of the EU's GDP growth slowing down, a massive increase in defense and infrastructure spending could support the bloc's economy, Bloomberg says. Meanwhile, the region’s inflation is approaching the ECB's 2% target. However, it is currently unknown what effect US import duties and the EU fiscal expansion will have on prices in Europe, the news agency emphasizes.