The ECB lowered its key interest rates by 0.25 percentage points in the interest rate decision. For the deposit rate, the most important key interest rate, this means a decrease from 2.75 to 2.50 percent.
This was in line with the average forecast among analysts, according to the news agency Bloomberg.
The euro also strengthened against the dollar despite the interest rate cut, up half a percent to 1.08 dollars per euro. This is the highest euro rate against the dollar in four months and a continuation of the trend in recent days where the dollar has taken a hit.
"A bit more hawkish", writes Frederik Ducrozet at Pictet bank about how the ECB expresses itself on the interest rate situation.
The ECB writes in its statement that there is great trade policy uncertainty and great political uncertainty in general, which can impact reduced exports and a weakened investment trend.
The weakening is, however, partially offset by higher real incomes in the eurozone and lower interest rate pressure on companies and households.
