Policymakers lowered rates a quarter point and said that the region’s growth outlook had “deteriorated” because of rising trade tensions.

In 2025, the European Central Bank and its American counterpart have taken starkly different approaches to monetary policy, with the ECB continuing to slash interest rates, and the Fed holding them steady.

The European Central Bank cut interest rates Thursday for the seventh time to counter worries about economic growth fueled by President Donald Trump’s tariff onslaught.