<h1>ECB to Cut Interest Rates Amid US Trade War Concerns and Rising European Defense Spending</h1> The European Central Bank (ECB) is set to cut interest rates by a quarter percentage point amid concerns over a potential trade war with the United States and increased European defense spending. Analysts anticipate the ECB's benchmark deposit rate will drop to 2.50%, aiming to reduce borrowing costs as the economy struggles. The ECB faces conflicting pressures: US tariffs could slow growth, necessitating lower rates, while increased defense spending might boost growth but also inflation. Germany's decision to loosen borrowing limits further complicates the economic landscape. ECB President Christine Lagarde's response to these challenges will be closely watched.