European Central Bank policymakers backed further policy easing on Friday just a day after the bank's fourth straight rate cut, despite fresh surveys pointing to continued inflation momentum. The ECB cut interest rates to 2.

The European Central Bank on Thursday cut interest rates by a quarter of a percentage point, saying it expects inflation to fall back to its target later in the year and signaling that further easing is likely in coming months.

The European Central Bank is set to lower interest rates for a fifth meeting as inflation that’s nearing the 2% target lets officials further loosen the shackles on the economy.

Euro zone inflation will be back at the European Central Bank's 2% target by the summer and interest rates could keep on falling to support the economy, French central bank chief Francois Villeroy de Galhau said just a day after the ECB's fourth straight rate cut.