ECB to cut rates again to support eurozone economy — Reuters

The European Central Bank (ECB) is expected to cut interest rates again on Thursday to support the struggling eurozone economy, according to Reuters.

Falling inflation combined with recent market turbulence has set the stage for another round of monetary easing in the eurozone. However, ECB President Christine Lagarde is likely to avoid giving clear signals about future moves, citing lingering uncertainty, the agency reports.

While US President Donald Trump has suspended most import tariffs, many remain in place. ECB estimates show these duties could cut eurozone GDP growth by half a percentage point, erasing nearly half of the bloc's projected economic expansion. According to Morgan Stanley analysts, the trade disputes could also drive inflation below the ECB's 2% target.

Meanwhile, UBS economists warn the ECB may be forced to start raising borrowing costs next year to prevent an inflation overshooting in 2027.