Economists warn ECB to avoid delaying last two rate cuts

Almost 30% of analysts say the ECB can hold just once before markets conclude rates are at a floor

Christine Lagarde, president of the European Central Bank (ECB. Photographer: Damian Lemanski/Bloomberg

The European Central Bank will lower interest rates twice more, according to a Bloomberg survey, but respondents warned it shouldn’t wait too long between those moves or investors will conclude that its easing campaign is already over.

Respondents predict quarter-point reductions on June 5 and at September’s meeting, when new quarterly forecasts should shed more light on the effects of US President Donald Trump’s reordering of global trade. That would bring the deposit rate to 1.75%, where the poll sees it settling through the end of 2026.