The European Central Bank is expected to cut interest rates today for the third time this year, citing the stagnant economy and the growing control over inflation in the eurozone.

The euro zone's central bank would move its emphasis from controlling inflation to safeguarding economic growth, which has been falling far short of that of the US for the past two years, with the first consecutive rate decrease in 13 years.

The most recent economic data, which included somewhat lower-than-expected readings for September's inflation and business activity is likely to have swung the ECB's balance in favour of a rate cut.

The rate that the ECB pays on bank deposits would drop to 3.25% with a quarter-point reduction today, and the money markets almost entirely price in three further reductions until March of next year.

Lagarde and associates are expected to stick to their stall of saying that decisions would be taken "meeting by meeting" in light of new information.

However, the majority of ECB observers believe that cutbacks will be made at every meeting until the spring.

Now that the biggest wave of inflation in more than a generation has mostly passed, the ECB may finally declare victory.

For the first time in three years, prices climbed by less than 1.8% last month, below the bank's 2% objective. Although inflation could surpass 2% by year's end, in the "medium term," or the duration that policymakers monitor, it is anticipated to remain at or even somewhat decline from that level.

However, the economy has suffered greatly as a result.

Investment and economic growth have been hindered by high borrowing rates, which have been problematic for almost two years. More of the same in the upcoming months is suggested by the most current statistics, which include information on bank lending and industrial output.

(Sources: investing.com, reuters.com)