The EU is cutting interest rates and easing regulations to revive growth, but inflation risks, US policy divergence, and trade tensions could disrupt the plan. Here’s what’s at stake.

The European Central Bank is cutting its key interest rate, a step to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to chart a course amid political turmoil in leading economies France and Germany.

The European Central Bank (ECB) is expected to cut key interest rates again on Thursday in what would be the fifth rate cut in the eurozone since mid-2024. Economists expect the central bank to cut the key deposit rate - the interest that banks receive for parking funds at the ECB - by 0.