The ECB lowered its main interest rate by a quarter point to a new record low of 0.50 percent in response to a drop in inflation well below its target level, and rising unemployment.
The cut was widely expected, after ECB President Mario Draghi said last month the bank stood ready to act. He will hold a news conference at 1330 BST to explain the decision.
Economic data over the last month have bolstered the case for action, with unemployment hitting a record high in April, when inflation saw its biggest monthly drop in over four years, to 1.2 percent.
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