ECB cuts further
Short Note Major Markets , 30. Jan
As had been widely expected, the ECB Governing Council decided today to cut the deposit rate by a further 25 basis points (bp) 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.
In our view, the Governing Council will cut key interest rates by a further 25bp at the March meeting. We believe that a larger move of 50bp would not fit in with the ECB economists' current economic outlook, which forecasts a gradual economic recovery in the course of 2025. At the next meeting in March, the ECB economists will issue new forecasts on inflation and growth.
In our view, the Governing Council will cut key interest rates by a further 25bp at the March meeting. We believe that a larger move of 50bp would not fit in with the ECB economists' current economic outlook, which forecasts a gradual economic recovery in the course of 2025. At the next meeting in March, the ECB economists will issue new forecasts on inflation and growth.