President Christine Lagarde

“deposit facility to 2% by September”

“Markets currently price a full percentage point of further ECB reductions by autumn, against barely half a point for the Fed”

“ECB's baseline forecast that euro-area inflation will settle at the 2% target over the course of 2025”

“The ECB cut its deposit rate four times in 2024, taking it to 3%”

“The Federal Reserve, by contrast, delivered only one reduction in the second half of the year”

“Germany, the bloc's largest economy, recorded its second consecutive annual GDP contraction in 2024”

“With the deposit facility at 3% and inflation at 2.4%, the ex-post real rate is currently around 0.6%”

“The trade-weighted euro has fallen roughly 3% since the Fed signalled a slower cutting path in December”

“The next governing council meeting is on 30 January”