FRANKFURT: President Christine Lagarde said the European Central Bank was in a `good place` to deal with global uncertainty as it cut interest rates again Thursday, fuelling expectations it might soon hit pause after a lengthy easing cycle.

The ECB cut its key deposit rate a quarter point to two per cent, as widely expected, its seventh consecutive reduction and eighth since June last year when it began lowering borrowing costs.

It also lowered its inflation forecast, with the indicator now expected to hit the central bank`s 2pc target this year, as US President Donald Trump`s tariff blitz exerts downward pressure on prices.-AFP