London CNN —The European Central Bank (ECB) cut interest rates Thursday, lowering borrowing costs for the second time in recent months as inflation slows and Europe’s economy stumbles.
The ECB cut rates for the first time in five years in June, but kept them unchanged at its last meeting in July.
However, it marginally downgraded the outlook for economic growth in the eurozone to 0.8%, from 0.9% projected in June.
“Financing conditions remain restrictive, and economic activity is still subdued, reflecting weak private consumption and investment,” the ECB said.
Earlier this week, former ECB chief Mario Draghi said in a report that slowing economic growth and productivity present an “existential challenge” to Europe.
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