About 75 economists polled by Reuters said that the European Central Bank will cut the deposit rate by 25 basis points on December 12, according to the opinions of all but two economists. They also expect next year to witness another reduction of at least 100 basis points, in light of slowing economic growth and mounting fears of US tariffs.
Also, most analysts kept their interest rate expectations, including expectations until the end of 2025, unchanged, awaiting further developments. In a Reuters poll conducted between December 2 and 5, 73 out of 75 economists expected a 25 basis point rate cut next week, the fourth such move this year. Two economists had expected a 50 basis point cut.
On the other hand, more than 80% of the survey participants, i.e. 60 out of 75, expected that the next quarter would witness two more cuts of 25 basis points each, at a time when 39 economists indicated that the European Central Bank may continue the reduction in the second quarter. From next year.
Regarding interest rate expectations for 2025, the survey results showed that more than 75% of experts expect interest rates at 2.00% or lower by the end of the year, reflecting expectations of greater interest rate cuts.
