Europe cuts interest rates as inflation drops below target

By Anna Cooban, CNN

London (CNN) — The European Central Bank on Thursday cut its main interest rate again, citing slowing price rises.

The widely anticipated move takes the ECB’s main rate to 2%, from 2.25% previously, and marks the eighth time the central bank has slashed borrowing costs since last June as inflation has tumbled from multi-decade highs. Year-on-year consumer price inflation across the 20 countries using the euro dropped to 1.9% last month — falling below the ECB’s 2% target for the first time since September.

The decision risks provoking further attacks by President Donald Trump on the Federal Reserve for not following suit and lowering borrowing costs in the United States.

The Fed has kept interest rates steady in recent months, opting to wait and see how the