In line with Cebr’s expectations, the European Central Bank (ECB) has today announced a 25-basis point reduction in interest rates.
The deposit rate now stands at 2.75%, its lowest since March 2023.
With inflation standing within touching distance of the ECB’s target, this move reflects concerns around weak growth in the Eurozone.
Indeed, data released this morning showed a stagnant economy in Q4 2024 and full year growth of just 0.7%.
Looser monetary policy will contribute to a slightly stronger outlook for the Eurozone this year, with Cebr forecasts pointing to an expansion of 1.0%, although this would still fall short of the pre-pandemic trend
