The post Tomorrow’s ECB interest rate cut is the only sure thing on its agenda appeared on BitcoinEthereumNews.com.

The ECB is cutting rates tomorrow, full stop. Traders are already treating the decision as done, with a 99% probability priced in for a 25 basis point trim. That drops the deposit facility rate to 2%, exactly half of what it was in mid-2023 when inflation was out of control and the ECB was scrambling. The number’s baked in, but the real question now is: What happens next? According to CNBC, the cut comes as inflation in the eurozone has dropped to 1.9% in May, nearly hitting the ECB’s 2% target. But growth still sucks. GDP in the bloc ticked up just 0.3% in Q1 2025, the most recent estimate. That’s weak. And the world around the euro area is not helping either.  The White House under Donald Trump has brought tariffs back into the global conversation. If the U.S. goes ahead with another round of trade penalties, EU retaliation is expected. Add to that Germany’s big fiscal reset and the EU’s rearmament spending, and you’ve got an economic outlook held together by duct tape. ECB gives no clear path beyond tomorrow No one expects the ECB to spell out where this is going. The market wants guidance. The Governing Council isn’t giving any. Not this week. Some analysts see another cut as early as July. Jack Allen-Reynolds, who works as deputy chief eurozone economist, said the latest inflation numbers opened the door for the next move to come sooner rather than later. But Barclays economists are betting on a slower pace. They said the ECB will avoid any promises. “We believe the ECB will remain non-committal on its policy path and continue to follow a meeting-by-meeting approach to maintain flexibility and optionality in policy calibration.” That’s corporate speak for “don’t expect a roadmap.” Their base case? Keep rates flat…

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Filed under: News - @ June 4, 2025 11:28 am