Diverging signals about monetary policy from the European Central Bank and Federal Reserve this week have set the euro on a clear path for further weakness.

The European Central Bank lowered its key interest rates by 25 basis points on Thursday, bringing the deposit facility rate to 2.75%, as the disinflation process remains “well on track” while the economy showed an unexpected stagnation during the last quarter of the year.

U.S. President Donald Trump is getting his wish that interest rates drop across the world, just not at home where a strong economy and uncertainty over his own policies have set the stage for the Federal Reserve to diverge from its central bank peers.

The ECB (European Central Bank) continued policy normalisation today, with another 25 basis points (bps) worth of cuts across all three benchmark rates. This marks the fourth consecutive rate reduction, bringing the Deposit Facility Rate, the Refinancing Rate, and the Marginal Lending Facility Rate to 2.75%, 2.90%, and 3.15%, respectively.

The European Central Bank is cutting its key interest rate, a step to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to chart a course amid political turmoil in leading economies

The ECB is expected to cut rates by 25bps to 2.75% on Thursday as inflation nears 2% and growth remains weak. Analysts see further cuts in 2025, but US trade tariffs could add uncertainty.

Despite US President Donald Trump's sabre-rattling, the European Central Bank is set to press on with interest rate cuts Thursday as officials increasingly voice confidence that the fight against inflation is on track.

EUROZONE government bond yields and the euro held steady on Thursday (Jan 30) after the European Central Bank (ECB) cut interest rates by 25 basis points to 2.75 per cent, as expected. Read more at The Business Times.

For any repeat of the dramatic 1985 "Plaza Accord" between the U.S. and its main allies to weaken a then-stratospheric dollar exchange rate and ease America's widening deficits, the clue is probably in the name: "Accord".

European Central Bank President Christine Lagarde slapped down on Thursday a suggestion by her Czech colleague Ales Michl to include bitcoin among his country's official reserves.