Gradual interest rate cut expected from ECB

According to economists, the European Central Bank will cut interest rates starting in June. According to economists, the European Central Bank will cut interest rates gradually and steadily starting in June. Economists participating in the Bloomberg survey expect the ECB to cut interest rates once a quarter on median. Economists expect the deposit rate, currently at a record high of 4 percent, to fall to 2.25 percent by the end of 2025. Almost all economists agree that interest rate cuts will begin in June. However, ECB President Christine Lagarde has not promised to stick to a certain path, which is causing forecasts to vary. According to Dekabank Economist Kristian Toedtmann, ECB members do not have a common understanding in terms of their outlook on economic data. ING Economist Carsten Brzeski said, “The challenge for the ECB will be not to appear too hawkish.” “Instead, it will need to explain that a rate cut in June is not the result of the ECB wanting to support the economy, but rather a sign that it could somehow normalise its restrictive monetary policy stance,” he said.