A: Hey there, have you caught up on the latest news?
B: Nope, I've been busy! What's new?
A: Well, the European Central Bank just lowered its key interest rate for the seventh time in a row.
B: Whoa, that's quite a lot! Why did they do it?
A: It seems there are worries about slowing inflation and potential economic problems because of US tariffs.
B: Oh, I see. So what does this rate cut mean exactly?
A: Well, banks get this rate when they keep money with the ECB overnight, so it affects their borrowing costs and could stimulate spending and investment.
B: And how is inflation looking?
A: Eurostat says it's expected to be 1.9% in May, which is a bit lower than the ECB's target of 2%.
B: And what about economic growth this year?
A: The ECB says they expect the region's GDP to grow by 0.9%, same as their previous projection.
B: But I heard there were concerns about trade tensions affecting things...
A: That's right! If trade tensions escalate, growth and inflation could be lower than expected. So they're keeping an eye on that.
----------------
The European Central Bank has decided to cut its key interest rate for the seventh consecutive policy meeting amid easing inflation and concerns about a possible economic slowdown due to US tariff policies.
The ECB's Governing Council decided on Thursday to lower the deposit facility rate by 0.25 percentage points to 2 percent. The council steers the monetary policy stance through the rate. Banks receive the rate when they deposit money with the ECB overnight.
Eurostat, the European Union's statistical office, says annual inflation in the euro area is expected to be 1.9 percent in May compared with the same month last year. That is below the ECB's 2-percent target over the medium term.
The bank says it projects the region's gross domestic product to grow by 0.9 percent this year. That is the same as the previous projection announced in March.
But the ECB says "a further escalation of trade tensions over the coming months would result in growth and inflation being below the baseline projections."
B: Nope, I've been busy! What's new?
A: Well, the European Central Bank just lowered its key interest rate for the seventh time in a row.
B: Whoa, that's quite a lot! Why did they do it?
A: It seems there are worries about slowing inflation and potential economic problems because of US tariffs.
B: Oh, I see. So what does this rate cut mean exactly?
A: Well, banks get this rate when they keep money with the ECB overnight, so it affects their borrowing costs and could stimulate spending and investment.
B: And how is inflation looking?
A: Eurostat says it's expected to be 1.9% in May, which is a bit lower than the ECB's target of 2%.
B: And what about economic growth this year?
A: The ECB says they expect the region's GDP to grow by 0.9%, same as their previous projection.
B: But I heard there were concerns about trade tensions affecting things...
A: That's right! If trade tensions escalate, growth and inflation could be lower than expected. So they're keeping an eye on that.
----------------
The European Central Bank has decided to cut its key interest rate for the seventh consecutive policy meeting amid easing inflation and concerns about a possible economic slowdown due to US tariff policies.
The ECB's Governing Council decided on Thursday to lower the deposit facility rate by 0.25 percentage points to 2 percent. The council steers the monetary policy stance through the rate. Banks receive the rate when they deposit money with the ECB overnight.
Eurostat, the European Union's statistical office, says annual inflation in the euro area is expected to be 1.9 percent in May compared with the same month last year. That is below the ECB's 2-percent target over the medium term.
The bank says it projects the region's gross domestic product to grow by 0.9 percent this year. That is the same as the previous projection announced in March.
But the ECB says "a further escalation of trade tensions over the coming months would result in growth and inflation being below the baseline projections."
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Summary
European Central Bank lowers its key interest rate for seventh consecutive time due to concerns about slowing inflation and potential economic issues related to US tariffs. The ECB expects annual inflation of 1.9% in May, below its target of 2%. The bank's GDP growth projection remains at 0.9% for
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| Date | Name | Words | Time | WPM |
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| 2025/06/06 21:21 | Anonymous | 357 | - | - |
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ID: 54c1af92-86af-4516-913d-82f2c9171fc9
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20250606_01/
Date: June 6, 2025
Created: 2025/06/06 07:03
Updated: 2025/12/08 03:48
Last Read: 2025/06/06 21:21