ECB to Cut Rates for 6th Time

2025-03-06 07:32 By Joana Taborda 1 min. read

The ECB is expected to lower its key interest rates by 25bps in March 2025, marking the sixth reduction in borrowing costs since the easing cycle began in 2024.

This move would bring the benchmark deposit rate down to 2.5%, a level last seen in early 2023, as inflation eases to 2.4% following an anticipated acceleration in previous months due to base effects from energy prices.

Investors will closely monitor any signals regarding the ECB’s policy outlook for the remainder of the year, especially as economic conditions have shifted since the last meeting and remain uncertain and volatile.

The Trump administration has escalated trade tensions, and although no specific tariffs on the EU have been announced yet, they could be introduced soon.

Additionally, European countries are set to increase defense spending, particularly Germany, in response to the US decision to scale back military support for Ukraine and Europe.

The ECB will also release fresh macroeconomic projections.



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