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 U.S. and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

Traders see a 98% chance of a quarter-point reduction by the European Central Bank. The Federal Reserve has paused.

There’s no direct mention of the momentous geopolitical events of recent days. But the Governing Council says that “especially in current conditions of rising uncertainty, it will follow a data-dependent and meeting-by-meeting approach.”