by Reuters
Reuters.com
FRANKFURT, Sept 12 (Reuters) – The European Central Bank cut its interest rates on Thursday, saying lower inflation and economic growth were allowing it to take its foot off the brake slightly.
The second rate cut in three months marks a gradual normalisation in the ECB’s policy after the worst bout of inflation in a generation forced it to jack up borrowing costs to record highs last year.
“Based on the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to take another step in moderating the degree of monetary policy restriction,” the ECB said.