The European Central Bank (ECB) reduced the three key policy rates by 25 basis points, in line with market expectations.

The ECB lowered the main refinancing rate to 2.40%, the deposit rate to 2.25%, and the marginal lending rate to 2.65%.

According to the ECB, the process of decreasing inflation is progressing well, with both headline and core inflation declining in March. It was reported that the Eurozone economy has shown some resilience against global shocks, but the growth outlook has deteriorated due to trade tensions.

It was noted that increasing uncertainties could potentially reduce confidence among households and firms. The statement highlighted the possible tightening effect of trade tensions on financing conditions.

The statement also pointed out that inflation is approaching the 2% target.