The European Central Bank (ECB) has announced a reduction in interest rates to 2.75% as concerns grow over stagnation in the Eurozone economy. This marks the fifth rate cut since June as economic growth remains weak and inflation approaches the 2% target. Market reactions included a rise in European stocks, driven by positive earnings data, while the EUR/USD exchange rate turned positive following the announcement. ECB President Christine Lagarde indicated that the bank remains open to further easing measures, especially as global trade tensions, including potential tariffs, could impact economic recovery. Analysts expect additional cuts may be necessary as the economic landscape remains uncertain.