US EditionFor Markets, End to ECB Rate Cuts Just Got Closer
- The European Central Bank cut interest rates by 25 basis points on June 5, 2025, at its Frankfurt headquarters, marking its eighth cut in a year.
- This easing cycle followed a period of soaring inflation above 10% in 2022, which has since returned to the ECB’s 2% target amid slowing price pressures.
- ECB President Christine Lagarde indicated the Bank is nearing the end of the monetary policy cycle and highlighted the ongoing high economic uncertainty.
- Markets largely priced in the cut, with futures implying a pause in July and only one more possible cut later this year, while the banking sector gained on prospects of stable rates.
- The ECB revised inflation forecasts lower for 2025 and 2026, indicating the Bank’s progress in controlling inflation but leaving the outlook and rate path uncertain amid global risks.
20 Articles
20 Articles
For markets, end to ECB rate cuts just got closer
Traders are increasingly confident the European Central Bank will pause its run of interest rate cuts now that the central bank sees itself as well-positioned to deal with global economic uncertainty fuelled by US tariff policy
The European Central Bank (ECB) announced on Thursday its eighth cut in interest rates in a year, fulfilling the expected market script. The decision was made almost unanimously by its governing council (there was only one discordant voice among the governors). The ECB did not carry out a more aggressive move if in the future it had to pull ammunition to deal with an increase in commercial tensions. However, its President Christine Lagarde, aske…
‘Well-positioned’ eurozone may bring an end to interest rate cuts, says ECB’s Christine Lagarde
Eight times in the last year, the governing council of the European Central Bank has met in Frankfurt and decided to cut interest rates by 0.25pc. That sequence may well have come to an end yesterday, however, with its president, Christine Lagarde, saying the eurozone is now well positioned.
For the eighth time in a year, the European Central Bank (ECB) has lowered its rates thanks in particular to the decline in inflation on the continent, and is also in a "good position" to deal with the economic "uncertainties" related to customs duties.
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