A cut in eurozone interest rates in coming months became significantly more likely on Thursday after the European Central Bank acknowledged the gloomier economic outlook and softened its hardline stance on rate moves.

Jean-Claude Trichet, ECB president, cleared the way for a significant downgrade soon in the central banks’ growth forecasts and did nothing to correct financial market expectations of a quarter percentage point cut in borrowing costs in the 15-country region in April, or even earlier.