ECB Set for Rate Cut: Market Betting on 25 Basis Point Reduction Thursday

The European Central Bank (ECB) is poised to cut its key interest rate by 25 basis points on Thursday, with market analysts anticipating a 99% probability of this move. This reduction would bring the deposit facility rate down to 2%, half of the peak reached in mid-2023 during the ECB’s aggressive monetary tightening cycle. The anticipated change comes amidst declining inflation rates and sluggish economic growth across the Eurozone.