The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the U.S. and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

The European Central Bank cut interest rates for the sixth time in nine months on Thursday, sticking to its easing plan in the face of economic upheaval from an unfolding trade war and new plans to boost Europe's military spending.

Meanwhile new concerns that would massively reshuffle the economic picture are likely to intrude: the potential impact of new tariffs on European imports from U.S. President Trump

The European Central Bank decrees its fifth consecutive interest rate cut, sets the price of money at 2.5%, and anticipates that the next monetary decisions are not at all clear. Huge uncertainty". "Uncertainty everywhere".

The ECB has cut rates five times since June as inflation retreated and economic growth faltered. But with rates slowly approaching a level that no longer restricts economic growth, one might expect an end to the easing cycle.

The European Central Bank cut its benchmark interest rate by a quarter point to 2.5% on Thursday as inflation nears 2% and growth remains weak.View on euronews

The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the US and plans to

The European Central Bank cut interest rates as expected and kept the door ajar to more, even as a looming trade war with the US and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

The euro extended its gains and was last up 0.28% at $1.082, having traded at $1.0797 earlier, while government bond yields edged up. Germany's two-year bond yield traded at 2.25%, versus 2.22% just before the decision, while Italian bond yields edged up. European stocks were last down 0.6%.

The euro extended its gains after the European Central Bank cut interest rates as expected on Thursday (Mar 6) and kept the door ajar to more, even as a looming trade war with the US and plans to boost military spending drive Europe’s biggest economic policy upheaval in decades.