ECB forecast to cut faster to release economic shackles next year

The expectation shift mirrors a similar recalibration by financial markets — spurred by data pointing to a shakier economy and more rapid disinflation in the 20-nation eurozone

With inflation now a touch below the 2% goal, analysts see the ECB decreasing its deposit rate by a quarter-point next week and at every meeting through March. (Photo by Daniel ROLAND / AFP) (Photo by DANIEL ROLAND/AFP via Getty Images)

The European Central Bank will speed up interest rate cuts over the months ahead to bolster the economy, taking borrowing costs to levels that no longer restrict demand by the end of 2025, according to a Bloomberg survey.

With inflation now a touch below the 2% goal, analysts see the ECB decreasing its deposit rate by a quarter-point next week and at every meeting through March. Respondents then forecast two more reductions — in June and December — bringing the benchmark to 2%.