The European Central Bank cut interest rates again on Thursday but warned of "phenomenal uncertainty" including the risk that trade wars and more defence spending could fuel inflation, raising the prospect of a pause in its policy easing next month.

Germany's plans to drastically increase government spending will be a focus at President Christine Lagarde's press conference.

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.