The European Central Bank is likely to cut interest rates every quarter until the end of 2025, ending the easing cycle earlier than expected, according to a Bloomberg survey of economists.
Economists expect the deposit rate to be cut to 2.25 percent next December after six consecutive rate cuts. In a previous survey, they expected deposit rates to reach this level only in the second quarter of 2026.
The ECB already cut interest rates for the first time in June. At the same time, representatives of the bank announced further cuts, but with the condition that they will depend on the development of the situation due to the remaining great uncertainty.
Some members of the European Central Bank are signaling that wage pressures are holding back inflation, leaving no room for interest rate cuts. However, some point to the worsening economic situation.
Economists polled by Bloomberg cut their forecast for German gross domestic product growth to just 0.1 percent this year.
