ECB has cut its key interest rates by 25 basis points, effective June 11, 2025, citing improved inflation dynamics.
The deposit rate now stands at 2 per cent.
Inflation is projected to average 2 per cent in 2025, near the ECB’s target, with GDP growth forecast at 0.9 per cent.
Despite easing, the ECB remains cautious, signalling a data-dependent approach without committing to a set rate path.