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# ECB Cuts Deposit Rate to 2.25% as US Tariff Shock Raises Eurozone Downside Risks
- URL: https://www.theglobalbanker.com/ecb-cuts-deposit-rate-2-25-percent-us-tariff-shock-eurozone-downside-risks/
- Published: 2025-04-17T16:27:00.000Z
- Updated: 2026-10-28T10:14:58.000Z
- Description: The ECB trimmed its deposit rate by 25 basis points to 2.25% on 17 April, citing US trade policy as a source of material downside risk to the eurozone growth outlook.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe, #archive

The European Central Bank cut its deposit facility rate by 25 basis points to 2.25% on 17 April 2025, continuing its easing cycle. The Governing Council's decision was accompanied by an explicit acknowledgement that the escalation of US tariffs represents a material source of downside risk for the eurozone economy.

The ECB began its current easing cycle in mid-2024\. 

#### US TRADE POLICY

The Governing Council cited downside risks from US trade policy as a key factor informing the April decision. 

#### RATE PATH

The deposit rate now stands at 2.25%, having fallen from its peak of 4.00%. The ECB said it would follow a data-dependent, meeting-by-meeting approach and would not pre-commit to a particular rate path.