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.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn