Europe cuts interest rates as economic growth stagnates

What they're saying: The ECB said in a statement on Thursday that its "recent interest rate cuts are gradually making new borrowing less expensive for firms and households."

• "At the same time, financing conditions continue to be tight, also because monetary policy remains restrictive," it said.

The big picture: New data shows bleak economic conditions in Europe, especially relative to the U.S.

• The eurozone economy did not grow at all in the final months of 2024. Its largest economies — Germany and France — outright shrank.

What to watch: Much like other economic policymakers around the world, the ECB is cautious about the impact of potential tariffs on European exports imposed by the Trump administration. But how those tariffs will be implemented — and when — is unclear.

• "The risks to economic growth remain tilted to the downside," ECB president Christine Lagarde told reporters at a news conference on Thursday. "Greater friction in global trade could weigh on euro area growth by dampening exports and weakening the global economy."

Editor's Note: This story has been updated with comments by the ECB president.