The European Central Bank cut interest rates on Thursday and policymakers guided for a further reduction in March as concerns over lacklustre economic growth supersede worries about persistent inflation.

The European Central Bank lowered interest rates by a quarter point and signaled more rate cuts to come, aiming to bolster a stagnant eurozone economy that is highly exposed to the trade tariffs threatened by President Trump.

The European Central Bank on Thursday cut interest rates by a quarter of a percentage point, saying it expects inflation to fall back to its target later in the year and signaling that further easing is likely in coming months.