ECB 8 vs FED 0

• The ECB cut interest rates to 2%
• It has cut rates eight times in just over a year
• ECB says inflation is under control Policymakers turn more pessimistic about euro zone's economic prospects

With inflation now safely in line with its 2% target and the cut well-flagged, the focus has shifted to the ECB's message about the path ahead, especially since at 2%, rates are now in the "neutral" range where they neither stimulate nor slow growth.

The central bank for the 20 countries that share the euro offered few hints in its statement, however, sticking to its mantra that decisions would be taken meeting-by-meeting and based on incoming data.

"The Governing Council is not pre-committing to a particular rate path," the ECB said. "Interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission."