ECB cuts interest rate again as inflation appears under control – POLITICO

FRANKFURT — The European Central Bank cut its key interest rate by a quarter-point to 3.25 percent, as a souring growth outlook and weaker-than-expected inflation in September drove rate-setters to step up the pace of policy easing.

“The disinflationary process is well on track,” ECB President Christine Lagarde said at her regular press conference, pointing repeatedly to recent downside surprises in other economic indicators that she said had strengthened the Bank’s confidence that the post-pandemic inflation surge is all-but over.

She noted that the decision had been unanimous, but added that there had been no discussion of a larger cut, similar to the half-point cut made by the U.S. Federal Reserve in September.