It was the eighth rate cut in the past year, extending the bank’s divergence from the Federal Reserve, which has held rates steady since the end of last year.

Lower inflation and concern that U.S. President Donald Trump's trade war will slow already modest growth have cleared the way for the European Central Bank to cut interest rates at Thursday's policy meeting,

The European Central Bank cut interest rates for the eighth time in a year on Thursday, acknowledging inflation was under control and turning more pessimistic about the euro zone's economic prospects amid risks of a trade war with the United States.