The European Central Bank (ECB) cut its deposit facility rate by 25 basis points to 2%, citing a stronger euro and lower energy costs. This follows a May inflation rate of 1.9%, below the ECB's 2% target. The ECB lowered its inflation projections for 2025 and 2026, but revised core inflation upwards. Economic growth remains sluggish, at 0.3% in Q1 2025, though the ECB maintained its 0.9% growth forecast for the year. Uncertainty remains concerning US tariffs and their impact on the Eurozone economy.

Prepared by Christopher Adams and reviewed by editorial team.