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.

European Central Bank chief Christine Lagarde warned Thursday the eurozone faces "risks all over" amid US tariff threats and massive German spending plans, as policymakers cut rates again but signalled future monetary easing was in doubt.