ECB Preparing For First Rate Cut In June, With Further Cuts To Be Spaced Out
Country Risk / Spain / Thu 23 May, 2024
Key View
- We expect the European Central Bank (ECB) to cut its deposit rate by 25 basis points from its current high of 4.00% to 3.75% in June, versus our prior expectation for a cut in July. We retain our forecast for it to be lowered only slightly further to a year-end rate of 3.25%.
- Constrained regional growth prospects will motivate the ECB to