Market News

LONDON (Reuters) -The European Central Bank cut interest rates for the eighth time in a year on Thursday, acknowledging inflation was under control and turning more pessimistic about economic prospects amid risks of a trade war with the United States.

The ECB's key rate was lowered from 2.25% to 2.0%, the middle of the range that the central bank sees as "neutral" - neither curbing nor boosting the economy.

ECB President Christine Lagarde, at the post-meeting press conference, indicated the central bank was "in a good place" with monetary policy.

The euro got an additional boost from Lagarde saying there had been one dissenting vote in the decision to cut rates. It was last up 0.6% at $1.149 , while government bond yields rose.

Germany's 2-year bond yield was last up 5 basis points at 1.846%, as traders cut the chances of more than one rate this year . The STOXX 600 index fell 0.15%.