Inflation likely to hit ECB target next yr - Trichet

(Corrects size of Thursday's cut to 50 bps from 25 bps in first paragraph)

FRANKFURT (Reuters) - Euro zone inflation is likely to hit the European Central Bank's target next year, ECB President Jean-Claude Trichet said on Thursday after the bank cut interest rates by 50 basis points.

Turmoil on financial markets was likely to hit the global and euro zone economies, he told his monthly news conference after the rate cut.

"The outlook for price stability has improved further. Inflation rates are expected to continue to decline in the coming months, reaching a level in line with price stability during the course of 2009," he said.

Euro zone inflation fell to 3.2 percent in October after peaking at 4 percent over the summer, far above the ECB's ceiling of 2 percent. Analysts were watching Trichet's comments for any indications of further rate action the bank might be taken next month.

"The intensification and broadening of the financial market turmoil is likely to dampen global and euro area demand for a rather protracted period of time," Trichet added.

The cut was the ECB's second in less than a month, following an unscheduled move on October 8, and takes benchmark euro zone credit costs to 3.25 percent.