Euro zone inflation could return to the European Central Bank's 2% target sooner than earlier thought and will likely hover around this level even in the longer term, a fresh ECB survey showed on Friday.

The European Central Bank cut interest rates on Thursday for the third time in about four months, as inflation in the eurozone has cooled faster than expected. Policymakers who set interest rates for the 20 countries that use the euro lowered their key rate by a quarter point,

The European Central Bank lowered its key interest rate to 3.25%, making its second straight cut. The move widens the gap in benchmark borrowing costs with the Federal Reserve. Find out more: