Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday: Link to statement on ECB website: Good afternoon, the Vice-President and I welcome you to our press conference.

The European Central Bank cut interest rates by a quarter-point Thursday, responding to signs of deteriorating activity and weakening inflation despite bond-market turmoil over plans for a splurge of spending.

European Central Bank officials are bracing for tough negotiations over whether to cut interest rates further or hold fire when they next set borrowing costs in April, according to people familiar with their thinking.