ECB Cuts Rates to Historic Lows

The European Central Bank cut its main interest rate by 25 basis points to a record low of 0.50% on Thursday, after inflation fell well below the ECB's target and increasingly weak economic surveys increased doubts about a recovery.

The cut came as eurozone inflation fell to 1.2% in April, clearly undershooting the ECB's target of below but close to 2%.

In a Reuters poll, a slight majority of economists had tipped the ECB to cut rates this month. The euro initially fell after news of the decision before recovering and turning flat.

Investors are now eyeing the ECB's news conference, due to begin at 8:30 a.m. ET in Bratislava, to hear ECB President Mario Draghi explain the decision.