Skip to main content

ECB rate cuts: when, how fast, and how far?

The ECB looks set to cut rates in June, reducing the deposit rate from 4% to 3.75%, and we think it will follow that up with rate reductions at every remaining meeting this year. The pace of cuts might slow next year as policymakers feel their way towards the appropriate stance, but we suspect that the deposit rate will reach 2% by mid-2025. This is below the consensus forecast and the level priced into markets.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access