European Central Bank tipped to start year of rate reductions with 0.25% cut this week

Those on tracker mortgages are likely to see immediate reductions with financial markets pricing in four more ECB cuts in 2025

Financial markets have priced in at least four more reductions this year as the ECB continues to moderate rates following its aggressive monetary policy campaign to address high inflation. (Photo by Daniel ROLAND / AFP) (Photo by DANIEL ROLAND/AFP via Getty Images)

The European Central Bank (ECB) is set to cut interest rates by 25 basis points when it meets today, likely to be the first of five such rate cuts this year. 

The anticipated decision will bring the lender's key interest rate to 2.75% as the bank continues its easing cycle amid what will likely be a year of heightened uncertainty.