Central Banks
ECB to Keep Cutting Quarterly Despite Weaker Economy, Poll Shows
- Economists predict 25 basis-point reduction next week
- Deposit rate likely to remain at 2.5% through the end of 2026
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The European Central Bank won’t react to a weakening euro-zone economy by lowering interest rates more rapidly, according to a survey of analysts.
Respondents expect the ECB to follow June’s initial cut in the deposit rate with another reduction next week, maintaining that quarterly pace until reaching 2.5% next September. They see borrowing costs remaining at that level through 2026.