The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the U.S. and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

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

The ECB cut interest rates by 25 basis points and updated the language in its decision to say monetary policy was becoming “meaningfully less restrictive.”

A 25 basis point cut to the ECB deposit facility rate is widely anticipated, marking the seventh cut in the current cycle. Click to read.

The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the U.S. and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

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 to increase borrowing to ramp up military spending have reshaped the fiscal picture that the central bank must confront.

Denmark's central bank cut its key interest rate by 25 basis points to 2.10% on Thursday, following the European Central Bank's decision earlier in the day to cut euro zone rates.

European Central Bank cuts rates by a quarter point to support growth as possible trade war looms.