ECB rate cut of 25 bps okay, but not more

Investors expect the ECB to cut interest rates at every one of its upcoming meetings at least through next June. — Reuters

VIENNA: It is “conceivable” that the European Central Bank (ECB) will cut interest rates by 25 basis points at its next rate-setting meeting this month, but not more, ECB policymaker Robert Holzmann has said in a newspaper interview.

Investors expect the ECB to cut interest rates at every one of its upcoming meetings at least through next June and the 3.25% deposit rate is now expected to end 2025 at 1.75%, a level low enough – in the view of many economists – to start stimulating growth.