Christine Lagarde to face press as ECB set to implement another rate cut, seventh since June

BRUSSELS, BELGIUM: The European Central Bank is about to cut interest rates for the seventh time, a move that comes after US President Donald Trump’s tariffs shook market and darkened the economic outlook.

The deposit rate will be lowered to 2.25 percent from 2.5 percent on Thursday, according to almost unanimous survey of analysts by Bloomberg. Only one of the 62 respondents foresees a pause, while another reckons there’ll be a bigger move.

The unveiling of huge US trade levies has quashed talk that this week’s ECB meeting could bring a pause in the monetary-easing campaign that kicked off last June. The expectation is that the measures will crimp economic expansion rather than stoke inflation, making markets all but certain that borrowing costs will be decreased again.

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Beyond Thursday, investors see at least two more moves by year-end as a stronger euro helps contain price pressures and the danger increases that low-cost Chinese goods will be diverted to Europe.

With trade negotiations still in flux, President Christine Lagarde is unlikely to offer clear indications on where rates will go next. Her press conference takes place today in Frankfurt, 30 minutes after the ECB’s decision is published.