The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the United States and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

The ECB cut rates by a quarter point, aiming to buffer an economy threatened by tariffs and a sudden need to ramp up military spending.

A 25 basis point cut to the ECB deposit facility rate is widely anticipated, marking the seventh cut in the current cycle. Click to read.