The European Central Bank on Thursday cut interest rates by 25 basis points and updated the language in its decision to say monetary policy was becoming "meaningfully less restrictive." The cut brings the ECB's deposit facility rate, its key rate, to 2.5% — a move that markets had widely priced in before the announcement.

Inflation in Europe eased to 2.4% in February, supporting the case for another interest rate cut from the European Central Bank but leaving open how far the central bank will go in lowering borrowing costs.

The bank cuts rates from 2.75% to 2.5% but faces pressures from threatened US tariffs and plans to boost military funding.