The European Central Bank has cut its benchmark interest rate to a new record low amid ongoing worries about the eurozone's economic health.
The rate is now 0.5% after being at 0.75% for 10 months.
Worries about eurozone economies were underlined on Thursday with data showing manufacturing activity across the bloc shrank in April. In Germany, manufacturing contracted for the second month running.
ECB president Mario Draghi said on Thursday "weak economic sentiment has extended into the spring of this year".
"Inflation expectations in the euro area continue to be firmly anchored," he said. "The cut in interest rates should contribute to support a recovery later in the year."
There are concerns that the ECB's low interest rates are not feeding through to those economies most in need of a boost, with potential lenders still worried about the economic health of countries such as Greece and Spain.
"Monetary policy stance will remain 'accommodative' for as long as needed," Mr Draghi said.
"We will monitor very closely all incoming information, and assess any impact on the outlook for price
stability."
Mr Draghi said that the ECB was prepared to cut interest rates further should conditions make it necessary. He also said the bank was "technically ready" for negative deposit rates.
