ECB cuts inflation, growth projections

• The European Central Bank cut some of its growth and inflation projections on Thursday as the fallout from a global trade war is likely to prove a drag for the 20-nation euro zone.
• Inflation is now seen falling further below the ECB's 2% target next year as lower energy costs, a stronger euro, and weak economic growth all weigh on prices. A muted outlook for both economic growth and inflation is why the ECB cut interest rates again on Thursday, lowering the deposit rate by a combined 2 percentage points since last June.
• However, this may not be enough. Markets expect between one and two additional rate cuts this year, as growth remains anaemic and there is no meaningful rebound on the horizon.

(Sources: Reuters)