ECB cuts interest rate to 3.5% and warns of weak eurozone growth

European Central Bank makes 0.25-point cut as expected after eurozone inflation fell to 2.2% in August

The European Central Bank has lowered interest rates for the second time this year, as it warned that economic growth in the eurozone will be weaker than it had hoped.

The ECB's governing council decided to lower its deposit rate - paid to banks that make overnight deposits with the Eurosystem - by a quarter of a percentage point, from 3.75% to 3.5%, on Thursday.