INSTANT VIEW-ECB cuts rates again

LONDON, Jan 30 (Reuters) - The European Central Bank cut interest rates on Thursday and kept the door open to further policy easing as concerns over lacklustre economic growth supersede worries about persistent inflation.

It was the fifth ECB rate cut since June and markets expect two or three more this year, driven by arguments that the biggest inflation surge in generations is nearly defeated and the flagging economy needs relief.

MARKET REACTION:

Germany's 10-year bond yield DE10YT=RR was last down 6 basis points on the day at 2.51%, having dropped earlier after weak growth data.

The euro EUR=EBS was down 0.1% at $1.0412, broadly in line with where it was trading before the decision, while the pan-European STOXX 600 .STOXX index was up 0.6% at 537.23 points, within a whisker of its record intraday high reached earlier in the session.

COMMENTS:

MARCHEL ALEXANDROVICH, ECONOMIST, SALTMARSH ECONOMICS, LONDON:

"The ECB is starting 2025 in a similar way to how it finished 2024, by cutting interest rates and signalling that it expects to ease policy again in the coming months. As in December, there is a judgement that 'monetary policy remains restrictive', which is an indication that the Governing Council still has further work to do."