The European Central Bank (ECB) has reduced interest rates for the seventh time in just 12 months, as it attempts to support a weakening eurozone economy now facing further pressure from US trade tariffs.

In its latest move, the ECB trimmed its benchmark deposit rate by 0.25 percentage points, bringing it down from 2.5% to 2.25%.

The cut offers immediate relief to tracker mortgage holders across Ireland and is expected to exert downward pressure on other lending rates in the market.

This decision comes shortly after the latest inflation data showed a eurozone rate of 2.2% in March, slightly lower than February’s 2.3%.

With inflation edging closer to the ECB’s 2% target, the bank has more room to continue cutting rates to support growth.

Commenting on the latest interest rate adjustment, EY Ireland Chief Economist Dr Loretta O’Sullivan said: “While markets and commentators will be looking for ‘easter eggs’ in President Lagarde’s remarks at the upcoming press conference, today’s decision was in line with expectations.

“The latest data for the Euro area show progress is being made on the inflation front - the headline rate eased to 2.2% in March and there was a further deceleration in services inflation.

"On the growth front, heightened trade uncertainty is likely to weigh on the economy in the coming months, which the Eurozone Composite Purchasing Managers’ Index suggests is barely expanding as is.

"This will have a dampening effect on inflation, as will the recent appreciation of the euro.

“Tariffs, of course, tend to push up prices, but where the US and EU ultimately land on these remains to be seen.”