ECB cuts further

As was widely expected, the ECB decided to cut the deposit rate by a further 25 basis points to 2.75%. The decisive factors were the inflation outlook, the dynamics of underlying inflation and the transmission of monetary policy. The decision was unanimous. According to President Lagarde, a larger step of 50 basis points was not discussed. We expect a further interest rate cut of 25 basis points at the March meeting. The ECB economists will then also provide new forecasts on inflation and growth.