The European Central Bank cut its interest rate for the fifth time since last summer and its expected to ease borrowing at least another three times this year as it tackles ongoing economic weakness in its largest economies.

It shaved another quarter of a percentage point off the rate, bring it down to 2.75% in a move that was widely expected with France and Germany suffering slow growth.

Consumer price inflation in the 20-country eurozone is 2.4%, above the ECB’s 2% target because wages and prices in certain sectors remain sticky, though wage growth is moderating.

Christine Lagarde, ECB president, said she was “confident wages are coming down”.

The decision came after the US Federal Reserve voted on Wednesday to keep its rates unchanged at 4.25-4.5%. The Bank of England is expected to reduce its borrowing costs next week by a quarter of a percentage point to 4.5%.

The FTSE 100 served up its fourth straight session of gains, striking a new record high after another flurry of positive earnings updates. It closed 89.07 points (1.04%) higher at 8,646.88. The more domestically-focused FTSE 250 also rose strongly, ending the day up more than 1%.

Investors were also drawn to equities as yields on UK government bonds eased back further.

Shell (up 2.62% to 2,663p)and St James’s Place (up 101p to 1,030p) benefited from positive trading updates.

Shares in drinks maker Fever-Tree were up 20.2% to 791p after brewing giant Molson Coors has bought an 8.5% stake and granted it an exclusive rights deal in the US.

Handbag retailer Mulberry fell 5.1% to 92.5p after revealing that revenue over Christmas fell by one-fifth compared with the previous year.

The pound was flat at $1.244 as investors considered comments from Fed Chair Jerome Powell that it is in no hurry to change tack.