FRANKFURT — The European Central Bank cut its key deposit rate by 25 basis points to 2.50 percent, but its boss, Christine Lagarde, said the Bank may pause cuts as growing uncertainty clouds the economic outlook.

The European Central Bank cut interest rates for the sixth time in nine months on Thursday, sticking to its easing plan in the face of economic upheaval from an unfolding trade war and new plans to boost Europe's military spending.

The European Central Bank decrees its fifth consecutive interest rate cut, sets the price of money at 2.5%, and anticipates that the next monetary decisions are not at all clear. Huge uncertainty". "Uncertainty everywhere".

The central bank for the 20 countries that use the euro has pivoted from hiking rates to tackle inflation, which surged with Russia’s invasion of Ukraine, to lowering them to boost the eurozone’s flou

European Central Bank President Christine Lagarde said on Thursday she expected any decision by Western countries on what to do with currently-frozen Russian assets would take into account international law.

The European Central Bank's Governing Council said Thursday it had decided to lower three key interest rates by a quarter point. The bank cited the "disinflation process" in making the decision.

Vows by European leaders in increase borrowing to ramp up military spending have reshaped the fiscal picture that the central bank must confront.

Germany's plans to drastically increase government spending will be a focus at President Christine Lagarde's press conference.

The European Central Bank is cutting interest rates by a quarter percentage point, lowering credit costs for consumers and businesses to support an economy that is struggling to show solid growth.

European markets are set to open higher on Thursday as investors await the European Central Bank’s (ECB) latest monetary policy decision. Economists are predicting the central bank will lower its key interest rate by 25 basis points to 2.