European Central Bank policymakers backed further policy easing on Friday just a day after the bank's fourth straight rate cut, despite fresh surveys pointing to continued inflation momentum. The ECB cut interest rates to 2.

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.

The European Central Bank has cut interest rates and kept the door open to further policy easing as concerns over lacklustre economic growth supersede worries about persistent inflation.