The European Central Bank (ECB) reduced its key interest rate on June 6, 2025, marking the eighth cut in just over a year. The rate was lowered from 2.25% to 2%, affecting the countries that use the euro. The decision comes amid economic uncertainty and the looming threat of tariffs from the United States. The ECB has been grappling with a sluggish economy in the eurozone, which has been exacerbated by trade policies. Inflation has eased across the region, but economic growth remains a concern. The ECB's actions are part of a broader effort to stimulate economic activity and mitigate the impacts of external pressures. The central bank has been monitoring the economic landscape closely, adjusting policies to support stability and growth. The rate cut is expected to provide some relief to businesses and consumers, though the full effects remain to be seen. The ECB continues to assess the economic situation and will likely make further adjustments as needed to navigate the challenges posed by global trade tensions and domestic economic conditions.