Inflation in the euro zone has slowed to converge with the European Central Bank's 2% target and the risk now is undershooting the goal, ECB policymaker Mario Centeno told an event in Washington on Tuesday.

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.

The ECB is expected to announce a rate cut on Thursday, responding to falling inflation and worsening economic conditions. Eurozone inflation fell to 1.8% in September, while weak PMI data indicates economic stagnation.

The European Central Bank (ECB) went on with a second consecutive interest rate cut for the first time since 2011, in a bid to cope with a projected slowdown in the eurozone. The ECB cut a further 0.25% to the deposit rate,

The European Central Bank cut interest rates again Thursday, upping the tempo at which it is lowering borrowing costs as inflation in the eurozone cools faster than expected.

The ECB cut rates three times already this year from a record high and markets now see cuts at each of its next four or five meetings as growth is flatlining around zero and inflation is lower than forecast.

The European Central Bank must be agile with further interest-rate cuts to avoid the risk of acting too slowly, according to Governing Council member Francois Villeroy de Galhau.