Despite US President Donald Trump's sabre-rattling, the European Central Bank is set to press on with interest rate cuts Thursday as officials increasingly voice confidence that the fight against inflation is on track.
After lowering key rates in December, the ECB is widely expected to announce another 25 basis points (bps) cut, taking the benchmark rate on deposit facility from 3% to 2.75%. It would be the fourth straight interest rates cut after trimming them in September, October and December 2024.
Eurozone rate-setters are set to cut borrowing costs again this week, confident their efforts to lower inflation will remain on track despite the threat from US President Donald Trump's protectionist agenda.
The ECB is expected to drop its main lending rate from 3 per cent to 2.75 per cent, its fifth cut since last July.
Officials reduced the deposit rate by a quarter-point to 2.75% — as predicted by all analysts in a Bloomberg poll.
The European Central Bank meets on Thursday for the first time since Donald Trump returned to office, leaving U.S. tariff threats looming over the euro zone's sluggish economy and potentially complicating the economic outlook.
Speaking at a press conference, ECB President Christine Lagarde suggested “liquid, secure and safe“ standards for central banks likely precluded Bitcoin as a reserve asset.
ECB officials reduced the deposit rate by a quarter-point to 2.75%. They continued to describe their current monetary-policy stance as ‘restrictive’, signaling more loosening is in the pipeline, while
The European Central Bank on Thursday cut interest rates by a quarter of a percentage point, saying it expects inflation to fall back to its target later in the year and signaling that further easing is likely in coming months.
European Central Bank policymakers lined up behind further interest rate cuts on Wednesday, indicating that next week's reduction is all but a done deal and further moves will also come even if the U.
At the World Economic Forum, President Trump's return to the White House overshadowed traditional talk on climate change, trade and development.
European Central Bank Governing Council member Klaas Knot said investor bets for interest-rate cuts in January and March are reasonable, while any commitment beyond is difficult due to heightened global uncertainty.