The European Central Bank cut interest rates on Thursday and policymakers guided for a further reduction in March as concerns over lacklustre economic growth supersede worries about persistent inflation.

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 lowered borrowing costs for a fifth time since June and while policymakers are confident the 2% inflation target is in reach, they are concerned about the euro zone’s stalling economy.