ECB cuts rates to 2% in effort to lift flagging EU economies

The European Central Bank has cut interest rates to 2% in an effort to boost weak economic growth across the eurozone.

- Phillip Inman

Making its eighth quarter-point cut in a year, the ECB said the 20-member currency bloc needed a reduction in the cost of borrowing as it reeled from the damage caused by Donald Trump's trade wars.

Growth has slowed across the eurozone and especially in France, Germany and Italy, while the outlook for next year is weak, according to forecasts from the EU.

The move cuts the cost of borrowing to less than half the official level of 4.25% in the UK and between 4.25% and 4.5% in the US.

Donald Trump has criticised Jerome Powell, the chair of the Federal Reserve, for setting what he described as high interest rates.