Ecb Cuts Rates Once More As Euro Zone Economy Sags

The European Central Bank cut interest rates on Thursday for the third time this year, saying inflation in the euro zone was increasingly under control while the outlook for the blocs economy was worsening.

The first back-to-back rate cut in 13 years marks a shift in focus for the euro zones central bank from bringing down inflation to protecting economic growth, which has lagged far behind that of the United States for two years straight.

We believe the disinflationary process is well on track and all the information we received in the last five weeks were heading in the same direction - lower, ECB President Christine Lagarde told a press conference.

Those data are likely to have tilted the balance within the ECB in favour of a rate cut, with business activity and sentiment surveys as well as the inflation reading for September all coming in slightly lower than expected.

Asked about the prospect of higher tariffs on European goods if Donald Trump wins next months U.S. presidential election, Lagarde said any trade obstacles were a downside for Europe.