ECB lowers borrowing cost as inflation falls and economy remains weak

The European Central Bank cut interest rates for the fourth time this year and kept the door open to further easing in 2025 as growth takes a hit from political instability at home and the risk of a fresh trade war with the US.

The ECB has been easing policy rapidly this year as inflation worries have largely evaporated and the debate has shifted to whether it is cutting rates fast enough to support a stagnant economy that is falling behind its global peers.