European Central Bank Lowers Interest Rates Amid Political Crisis in France and Germany
The European Central Bank (ECB), led by President Christine Lagarde, has again cut interest rates while closely monitoring the political turmoil in France and Germany. The ongoing crises, including France’s search for a new government and the collapse of Germany’s ruling coalition under Chancellor Olaf Scholz, are affecting economic growth in the eurozone. The ECB warns of weaker-than-expected growth until 2026. This rate cut aims to make borrowing cheaper for households and businesses, encouraging investment amid uncertain economic prospects.