On September 3, Jin10 Data reported that the European Central Bank (ECB) remains very cautious about its interest rate cuts cycle, and it is expected that the rate cuts will exceed market expectations in 2025-2026. Analysts at Bank of America said in a report that the deposit intrerest rate will fall to 2% (currently 3.75%) in the third quarter of 2025 at the latest, and to 1.5% in 2026. They said, "Inflation is lower than expected, so the European Central Bank will cut interest rates to (their) neutral intrerest rate expectations in 2025, and further cut interest rates in 2026, which is still the basic situation."
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· 2024-09-03 14:01
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Bank of America: The European Central Bank's interest rate cut may exceed market expectations
On September 3, Jin10 Data reported that the European Central Bank (ECB) remains very cautious about its interest rate cuts cycle, and it is expected that the rate cuts will exceed market expectations in 2025-2026. Analysts at Bank of America said in a report that the deposit intrerest rate will fall to 2% (currently 3.75%) in the third quarter of 2025 at the latest, and to 1.5% in 2026. They said, "Inflation is lower than expected, so the European Central Bank will cut interest rates to (their) neutral intrerest rate expectations in 2025, and further cut interest rates in 2026, which is still the basic situation."