ECB Rate Cut Signals End of Easing Cycle

The European Central Bank (ECB) recently lowered interest rates by 25 basis points to 2%, signaling the end of its easing cycle. This move, led by President Christine Lagarde, has significant market implications. 2025: The ECB’s decision reflects a cautious approach, aligning with inflation forecasts and aims for economic stability. Market analysts interpret this as a sign of impending adjustments in liquidity and risk asset flows. Traders have reduced expectations for further cuts, expecting a more moderate easing by year-end.