The European Central Bank is cutting its key interest rate, a step to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to chart a course amid political turmoil in leading economies France and Germany.

The Czech National Bank (CNB) has limited room to ease monetary policy this year, with domestic inflation threats warranting caution, and there will be debate whether to keep or cut rates at next week's policy meeting,

ECB chief Christine Lagarde (pictured) said the single currency bloc was 'set to remain weak in the near term' as the rate was cut from 3% to 2.75%.