Reuters Survey: Will the European Central Bank Continue to Cut Rates to Revive the Economy?
✍️The latest survey conducted by Reuters on the Eurozone economy and European Central Bank policies indicates that the region will experience modest growth in 2025 and 2026, while the central bank is heading towards further rate cuts to stimulate the economy and address ongoing economic challenges.
📈According to the survey, the Eurozone economy is expected to grow by 0.9% in 2025 and 1.3% in 2026, estimates that are close to the results of the February survey, which indicated growth of 0.9% and 1.2% respectively.
📇The survey revealed that 40 out of 75 economists expect the European Central Bank to lower the deposit rate to 2.00% by the end of 2025, a move aimed at stimulating the economy and supporting credit activity amid ongoing concerns about slowing growth.
The current deposit facility rate is 2.50%, after the European Central Bank cut it by 25 basis points in its last meeting,
▶️This marks the sixth rate cut since June 2024, reflecting the continued accommodative monetary policy to support the European economy.
