The euro-zone economy is experiencing a "significant slowdown" and risks to growth remain weighted to the downside, European Central Bank President Jean-Claude Trichet said in an opening statement at his monthly news conference in Frankfurt. Domestic demand is likely to remain sluggish as financial turmoil increasingly weighs on real economic activity, he said. Meanwhile, inflation pressures have diminished and will likely remain in line with the bank's price-stability goals in the medium term, he said. The ECB on Thursday cut its key lending rate by 50 basis points, or half of a percentage point, to 2%.
