Economists in the ECB's Survey of Professional Forecasters now see inflation next year at 1.9%, below the 2% predicted three months ago, and see it holding at 1.9% in 2026. This is somewhat quicker than the ECB's own forecast, which puts inflation back at target only in the final quarter of 2025, and sees the year's average at 2.3%.

The European Central Bank cut interest rates on Thursday for the third time in about four months, as inflation in the eurozone has cooled faster than expected and economic growth has been sluggish. Policymakers who set interest rates for the 20 countries that use the euro lowered their key rate by a quarter point,

FRANKFURT — The European Central Bank cut its key interest rate by a quarter-point to 3.25 percent, as a souring growth outlook and weaker-than-expected inflation in September drove rate-setters to step up the pace of policy easing.