The European Central Bank declared yesterday that recent financial market turmoil was largely over, a sign that the bank would probably proceed with a plan to increase borrowing costs in early September to curb inflation caused by a rising economy, the New York Times reported today. The liquidity problems in the last week, which central banks around the world smoothed over with large cash infusions, had led many investors to reassess whether the European Central Bank would tighten credit when it meets Sept. 6. Data released Tuesday showed that the pace of economic growth in the 13-nation euro zone slowed in the second quarter to 0.3 percent, about half the rate of the first quarter. France and Germany, the two largest euro members, registered 0.3 percent growth in the same period, less than economists had forecast, but in line with the central bank’s prognosis of steady growth that would allow it to raise its benchmark rate by a quarter-point.

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