The central bank's decision comes at a critical time for the euro zone economy as businesses and policy makers face increasing uncertainty in the wake of rising geopolitical tensions. The ECB also released its latest economic projections,

It was the eighth rate cut in the past year, extending the bank’s divergence from the Federal Reserve, which has held rates steady since the end of last year.

Lagarde’s guidance that policy is “well positioned” and upbeat forecast changes suggest a pause is coming in July