ECB cuts rates a quarter point amid concerns of tepid growth, impact of Trump trade policies

AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank is cutting interest rates by a quarter percentage point amid signs of weakening growth and concern about the impact of political chaos in France and the possibility of new U.S. import tariffs.  The bank’s rate-setting committee made the decision Thursday at its skyscraper headquarters in Frankfurt to lower the benchmark rate from 3.25% to 3%. Lower rates should support growth amid signs that the post-pandemic recovery is slowing in the 20 countries that use the euro currency and concerns that U.S. President-Elect Donald Trump might impose new tariffs, or import taxes, on goods imported to the US after he is inaugurated Jan. 20.