ECB lowers interest rates to 2.75%

Logo of European Central Bank 

The European Central Bank cut interest rates for the fifth time since the start of the monetary easing cycle in June, amid fears about weak growth and the impact of the trade policies of the Trump administration.

The central bank decided on Thursday to lower rates by 25 basis points to 2.75%, as expected, reaching their lowest levels in about two years.

The decision to cut borrowing costs was based on the bank's updated assessment of inflation expectations, core inflation dynamics and the path of monetary policy, according to a statement published on its website.

The ECB lauded the inflation reduction process, saying that price growth continues to slow broadly in line with expert expectations, and is set to reach the target level of 2% this year.