The effect of U.S.tariffs on European economic growth: How the ECB reacted.
Reading
The European Central Bank may cut rates again. This is because of worries about the economy and tariffs from the US. The cut should help businesses and people borrow money more easily.
The bank thought about stopping rate cuts before. But new tariffs from Donald Trump changed things. These tariffs made a rate cut more likely to happen.
Experts think the bank will cut the rate a little bit. It will go down to 2.25%. The bank had raised rates to fight high prices, but now prices are lower.
The economy in Europe is growing slowly. Prices are going up at a normal rate. Lower rates make borrowing cheaper, which can help the economy grow.
Trump has stopped the tariffs for now. But the risk of tariffs makes people worry about the economy. Europe trades a lot with the US, so tariffs could hurt businesses.
Questions
Why might the European Central Bank cut rates?
Because of worries about the economy and tariffs from the US.
What do experts think will happen to the bank's rate?
Experts think the bank will cut the rate a little bit to 2.25%.
How do lower rates help the economy?
Lower rates make borrowing cheaper, which can help the economy grow.
Discuss
Discuss this article with your AI tutor to practice. Your tutor will help you with vocabulary and grammar.
Read a new article every day anddiscuss it with AI at lingolette.com