The ECB is expected to cut rates further in 2025 as weak growth and cooling inflation persist

10 February 2025
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While markets predict a drop to 2%, some analysts suggest deeper cuts could follow if trade risks and global uncertainties escalate.

The European Central Bank (ECB) is back in the monetary easing spotlight, with markets and economists speculating just how far Frankfurt might go in cutting interest rates in 2025.

After reducing its key deposit facility rate to 3% in 2024 — a full percentage point drop — economic and inflationary trends suggest further reductions may be on the horizon.

 

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