[Music] the European Central Bank cut interest rates again on Thursday it lowered its deposit rate by 25 basis points to 3 a half% in a widely predicted move it made the cut as inflation slowed and economic growth faltered ECB president Christine lagard b Bas on our updated assessment of the inflation Outlook the Dynamics of underlying inflation and the strength of monetary policy transmission it is now appropriate to take another step in moderating the degree of monetary policy restriction it follows up on a similar cut in June as inflation is now close to its 2% Target and the demestic economy is skirting a recession investor attention has already shifted to what comes next but the ECB gave no clues to its next step even as Market Watchers bet on steady policy easing in the months ahead our interest rate decisions will be based on our assessment of inflation Outlook in light of the incoming economic and financial data the Dynamics of underlying inflation and the strength of monetary policy transmission we are not pre-commit to a particular rate path movish ECB policy makers have argued recession risks are rising and high ECB rates are now restricting growth far more than needed but inflation wey Hawks are still in a majority and they believe the labor market remains too hot for the ECB to sit back they also argue underlying price pressures rais the risk inflation could surge again inflation is still only seen back at Target in the second half of next year that means few policy makers will likely ask argue against further easing but the key divide is how quickly the ECB should move investors are also divided another cut by December is fully priced into financial markets but some also see a chance of an interim move in October [Music]