US tariffs push ECB toward June rate cut — Bloomberg

European Central Bank (ECB) officials are weighing further interest rates cuts in an effort to shield the region’s economy from the impact of US tariffs even if Washington softens its stance, Bloomberg reports.

ECB policymakers discussed the current economic outlook during meetings at the International Monetary Fund. Most agreed that uncertainty over US trade policy will remain a key factor holding back business and household spending, keeping inflation subdued across the eurozone.

Consumer prices in the region are facing additional downward pressure from a stronger euro, tighter financial conditions, and declining energy costs. These factors have increased the likelihood of a 25-basis-point ECB rate cut in June.

The ECB Governing Council is divided over the future of monetary policy. Some officials are pushing for further rate reductions, while others urge caution, citing long-term risks. Meanwhile, Christine Lagarde, the central bank’s president, stresses the importance of a flexible, data-dependent approach.