eurozone

While inflation has eased across the eurozone, the economy has been sluggish even before the US president rolled out his aggressive tariff policy which has prompted threats of retaliatory taxes from the wider European Union.

Carney has experience in this area having dealt with a number of acute political-economic crises, such as the banking crash, the eurozone crisis, sterling's sharp slide after Brexit, and the start of the pandemic.

The ECB cut its main interest rate to 2.5% from 2.75%, and once again reduced its forecasts for economic growth in the eurozone.

But it trimmed its prediction for eurozone growth, putting expansion in 2025 at just 0.9%, only slightly above the 0.7% pace recorded last year.

The eurozone economy may suffer if the Trump administration goes ahead with plans to impose "reciprocal tariffs" on every country that taxes US imports.