FRANKFURT, Germany (AP) — 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.
The bank’s move should support economic activity in the 20 countries that use the euro currency by making credit more affordable for consumers and businesses.
ECB President Christine Lagarde said at a post-decision news conference that “the major escalation in global trade tensions and the associated uncertainty will likely lower euro area growth by dampening exports."
"And it may drag down investment and consumption," she said.
The bank’s rate-setting council decided at a meeting in Frankfurt to lower its benchmark rate by a quarter percentage point to 2.25%. The bank has been steadily cutting rates after raising them sharply to combat an outbreak of inflation from 2022 to 2023.
Now that inflation has fallen, growth worries have taken center stage. The economy in the 20 countries that use the euro grew a modest 0.2% in the last three months of 2024. Inflation was 2.2% in March, close to the bank’s target of 2%.
The cut was widely expected by analysts given the sudden shadow cast over the eurozone’s growth outlook by Trump’s April 2 announcement of unexpectedly high tariffs, or import tax, on goods from other countries starting at 10% and ranging as high as 49%. The European Union faces a 20% tariff.
At the bank’s last meeting on March 6, Lagarde had raised the possibility of an upcoming “pause” in the bank’s series of rate cuts. But that option was practically eliminated by Trump’s announcement.
The bank’s benchmark steers rates throughout the economy. Lower interest rates make it less expensive to borrow money and buy goods ranging from homes to new factory equipment. That supports spending, business investment and hiring.
Trump has suspended the tariffs for 90 days, but the possibility of the 20% tariff rate he has proposed for Europe left economists and policymakers concerned that the higher costs will weigh on business activity — and lead to slower growth or even a recession if he carries through. The U.S. is Europe’s largest trade partner with some 4.4 billion euros ($5 billion) in goods and services crossing the Atlantic every day in both directions.
Uncertainty is another factor that could slow the economy since Trump’s pause for negotiations leaves it unclear where the tariff rate will actually settle. Businesses may hold off on making decisions if they don’t know what their costs will be.
European Union officials have offered Trump a “zero for zero” option that would see both sides dropping tariffs on industrial goods including cars. But Trump has said that won't be enough, and raised the possibility of Europe importing large additional quantities of US liquefied natural gas.
Economists at Berenberg bank think that by midyear some of the tariffs will be negotiated away, ending at around 12%. However that is still around 10 percentage points higher than average tariffs before Trump. in addition to that comes a separate 25% tariff on autos, aluminum and steel from all countries. The auto tariff will hit Europe’s prominent auto industry hard - and Trump has indicated it is is not up for negotiation.
Lagarde said the “cloud of uncertainty” over tariffs meant that rate decisions going forward would have to be taken on a meeting by meeting basis depending on what happens during the 90-day tariff truce.
“There is a negotiation which is ongoing, players around the tables have stated their position, proposals have been made, at least on one side, but all of that could change," she said.
"There’s a degree of unpredictability which adds to the uncertainty.”
President of European Central Bank, Christine Lagarde, arrives for a press conference after an ECB's governing council meeting in Frankfurt, Germany, Thursday, April 17, 2025. (AP Photo/Matthias Schrader)
FILE - The European Central Bank rises silhouetted against the blue sky, in Frankfurt, Germany, Thursday, March 6, 2025. (Boris Roessler/dpa via AP, File)
DENVER (AP) — A sick Jamal Murray may have been questionable for Game 6, but in his mind there was nothing ambiguous about his playing status.
“Absolutely not,” Murray said when asked if there was any chance he'd have sat out the game.
Murray scored 25 points and powered the Denver Nuggets past the Thunder 119-107 Thursday night, sending the series back to Oklahoma City for a decisive Game 7.
After being sick for 24 hours, Murray ignited the Nuggets with a four-point play to start things off and sank a step-back 3-pointer to start the fourth quarter that pushed Denver's lead into double digits.
Nikola Jokic led Denver with 29 points, 14 rebounds and eight assists, and Christian Braun scored a career playoff-best 23 points. But it was second-year reserve guard Julian Strawther who ignited the Nuggets' runaway, scoring a career playoff-high 15 points, all in the second half.
“Julian played huge for us, made real big shots," Aaron Gordon said. “I don't think that's something that they game-planned for.”
Strawther had a pair of 3s and a layup during the decisive 10-0 third-quarter spurt and he kept making big plays at both ends in the fourth quarter as the Nuggets finally had a laugher in this exhaustive, physical series.
Case in point: Strawther lost a crown in the fourth quarter. A ballboy retrieved the artificial tooth from the circle when the action went to the other end.
Gordon grabbed at his left hamstring late in the game and hobbled through the final few minutes, but he insisted he'd be fine for Game 7, which is Sunday, with the Minnesota Timberwolves awaiting the winner after dispatching Golden State in five games.
If he's good to go, that would be a huge relief for Denver interim coach David Adelman, who called Gordon “the reason why we've won games and won series and have a banner hanging up.”
Shai Gilgeous-Alexander led the Thunder with 32 points, but he didn’t get enough help from his teammates to clinch Oklahoma City's first trip to the Western Conference Finals since 2016. All-Star Jalen Williams scored six points on 3-of-16 shooting.
The Nuggets, who won the title two years ago, finally get two days off after a grueling past few weeks. They have played every other day since April 29.
“The guys in there looked like they were happier to have tomorrow off than they were about going to a Game 7,” Adelman said.
The Thunder have only lost back-to-back games twice this season, once in November and once in early April. However, this will be the current iteration's first win-or-go-home game.
“First of all, credit Denver — they threw a punch tonight as has happened in the series, both teams are exchanging blows," Thunder coach Mark Daigneault said. “They got theirs in tonight, and both teams have done a great job of standing back up, including us, and we need to do that on Sunday.”
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From left, Oklahoma City Thunder guard Luguentz Dort, center Isaiah Hartenstein, guard Cason Wallace, forward Jaylin Williams and guard Aaron Wiggins look on from the bench as time runs out in the second half of Game 6 in the Western Conference semifinals of the NBA basketball playoffs against the Denver Nuggets Thursday, May 15, 2025, in Denver. (AP Photo/David Zalubowski)
Denver Nuggets guard Julian Strawther reacts after hitting a 3-point basket late in the second half of Game 6 in the Western Conference semifinals of the NBA basketball playoffs against the Oklahoma City Thunder Thursday, May 15, 2025, in Denver. (AP Photo/David Zalubowski)
Denver Nuggets center Nikola Jokic collects a loose ball in the first half of Game 6 in the Western Conference semifinals of the NBA basketball playoffs against the Oklahoma City Thunder Thursday, May 15, 2025, in Denver. (AP Photo/David Zalubowski)
Oklahoma City Thunder guard Shai Gilgeous-Alexander, front, drives the lane as Denver Nuggets forward Michael Porter Jr. defends in the first half of Game 6 in the Western Conference semifinals of the NBA basketball playoffs Thursday, May 15, 2025, in Denver. (AP Photo/David Zalubowski)
Denver Nuggets guard Jamal Murray, front left, drives to the basket as Oklahoma City Thunder guards Alex Caruso, back left, and Luguentz Dort defend in the first half of Game 6 in the Western Conference semifinals of the NBA basketball playoffs Thursday, May 15, 2025, in Denver. (AP Photo/David Zalubowski)
