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 incoming information on inflation shows that the disinflationary process is well on track. The inflation outlook is also affected by recent downside surprises in indicators of economic activity,” the ECB said in its policy statement.

The first back-to-back rate cut in 13 years suggests that Governing Council members are increasingly worried about the eurozone’s growth outlook and less concerned about inflation staging a comeback.