The European Central Bank will trim its deposit rate again next week to 2.50%, according to all 82 economists polled by Reuters who expected two further cuts by the middle of this year.

A key measure of euro-area pay growth eased at the end of 2024, supporting European Central Bank plans to keep cutting interest rates as inflation slows.

France’s inflation rate fell to its lowest level in four years, taking it further below the European Central Bank’s target and priming the bank for a fresh cut to interest rates next week. Consumer prices in the country rose 0.

Euro zone inflation prospects improved while growth remained anaemic, fresh data showed on Friday, solidifying the case for further ECB rate cuts to stimulate an economy that has been stagnant for nearly two years.

Economists have added a big disclaimer to their view that the European Central Bank will cut interest rates three more times: Donald Trump.