The European Central Bank cut its key interest rate once again as a stimulus for the eurozone, as growth stagnates due to customers’ worries over inflation and political turmoil in leading European economies like France and Germany.

Euro zone manufacturers are more worried about cheap imports from China than tariffs from the United States, a European Central Bank survey showed on Friday. Only half of the manufacturers contacted by the ECB in a regular poll thought their business in the euro area would be affected by U.

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.

Several members of the ECB’s Governing Council have already voiced such fears, stressing that the ECB should cut rates to a “neutral” level as quickly as possible. Deutsche Bank’s Mark Wall said in e-mailed comments that rates may “quite probably” end up below neutral by year-end.

Sky News Business Editor Ross Greenwood says the European Central Bank has been trying to “hammer down” their interest rates.

European Central Bank policymakers are likely breathing a sigh of relief that the new U.S. administration did not impose the blanket trade tariffs some had feared and a rate cut next week now seems like a done deal.

The ECB is expected to cut rates by 25bps to 2.75% on Thursday as inflation nears 2% and growth remains weak. Analysts see further cuts in 2025, but US trade tariffs could add uncertainty.

Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday:

The Czech National Bank is considering adding bitcoin to its reserves. It should, regardless of what the European Central Bank thinks about that.

- 08:15 (EU) ECB Interest Rate Decision: Expected to cut Key Rates by 25bps; Expected to cut Deposit Rate by 25bps to 2.75%; Expected to cut Main 7-Day Refinancing Rate by 25bps to 2.90%; Expected to cut Marginal Lending Facility by 25bps to 3.15%.

Markets are more than fully priced for the ECB to trim rates by 25 basis points to 2.75% later on Thursday, with even a small chance of 50 basis points given how weak the EU economy is.