The European Central Bank, ECB today cut interest rates by 25 basis points to 2.25 percent in response to slowing growth and US President Donald Trump’s tariffs. Explaining the reason for the rate cut, the governing council of the Frankfurt-based bank said the outlook for growth had deteriorated owing to rising trade tensions.

The ECB said, the increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions. It added that these factors may further weigh on the economic outlook for the euro area.