ECB cuts rates, but Lagarde hints at pause

'We believe we are in a good position,' central bank chief says

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European Central Bank President Christine Lagarde speaks to reporters after the ECB's Governing Council meeting on June 5. © Reuters

FRANKFURT (Reuters) -- The European Central Bank cut interest rates as expected on Thursday but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target.

The ECB has lowered borrowing costs eight times, or by 2 percentage points, since last June, seeking to prop up a euro zone economy that was struggling even before erratic U.S. economic and trade policies dealt it further blows.

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