ECB decides to cut key interest rate for 7th consecutive policy meeting

The European Central Bank has decided to cut its key interest rate for the seventh consecutive policy meeting amid easing inflation and concerns about a possible economic slowdown due to US tariff policies. The ECB's Governing Council decided on Thursday to lower the deposit facility rate by 0.25 percentage points to 2 percent.

The council steers the monetary policy stance through the rate. Banks receive the rate when they deposit money with the ECB overnight. Eurostat, the European Union's statistical office, says annual inflation in the euro area is expected to be 1.9 percent in May compared with the same month last year.

The bank says it projects the region's gross domestic product to grow by 0.9 percent this year. That is the same as the previous projection announced in March. But the ECB says "a further escalation of trade tensions over the coming months would result in growth and inflation being below the baseline projections."