ECB to cut rates but stay guarded on path beyond

hile euro-area inflation has tumbled and a rebound in the 20-nation economy is stuttering, ECB officials still have an eye on stubbornly persistent price pressures

ECB President Christine Lagarde ( AP Photo/Michael Probst, file)

The European Central Bank is set to lower interest rates again, but will remain tight-lipped on the pace and extent of further action with inflation not yet fully defeated.

After a first reduction in June followed by a pause in July, the deposit rate will be decreased by a quarter-point to 3.5% on Thursday, according to all 68 economists surveyed by Bloomberg. Two other rates will also be adjusted as part of a policy revamp unveiled in March, but with few immediate consequences.