The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, is expected to cut borrowing costs once again on Thursday after figures showed inflation across the bloc falling to its lowest level in more than three years and economic growth waning.

Czech interest rates in the coming years will be higher than in the past and cuts will be done with caution, central bank Governor Ales Michl said on Thursday.

In Europe, where inflation has cooled sharply, the economy is weak and could use a boost. The area is vulnerable to the conflicts around it.