The European Central Bank (ECB) delivered another interest rate cut on Thursday, as anticipated by markets. However, the announcement carried a significant undercurrent: a strong suggestion that the bank’s easing cycle, lasting over a year, might be nearing its end.

This latest reduction marks the eighth rate cut since June of last year, totaling a 2 percentage point decrease. The ECB’s aggressive monetary policy was designed to bolster the Eurozone economy, which faced considerable headwinds even before recent uncertainties stemming from U.S. economic and trade policies added further complexity.

With inflation now settling just below the ECB’s 2 percent target, President Christine Lagarde conveyed a positive assessment of the current interest rate trajectory, describing the situation as a “good position.” This carefully chosen wording is interpreted by investors as a clear indication that further rate cuts are unlikely, hinting at a pause in the easing strategy, if not a complete cessation of stimulus measures.