European Central Bank (ECB) to Continue Interest Rate Cuts Through 2025, Says Dutch Council Member Klaas Knot
In a recent interview with Dutch TV programme Nieuwsuur, ECB governing council member Klaas Knot stated that the ECB is expected to continue cutting interest rates at least through the first half of 2025, with rates likely to end up between 2% and 3%.
Knot emphasized that the gradual reduction of interest rates will persist in the coming years, aiming for a more natural level compared to pre-pandemic levels. The recent deposit rate cut of 25 basis points to 3.50% follows a similar cut in June.
This news has significant implications for the financial markets and individual investors. With interest rates expected to remain low for the foreseeable future, borrowers may benefit from cheaper borrowing costs, while savers may face challenges in earning interest on their deposits.
Overall, this announcement highlights the ECB's commitment to supporting economic growth and stability in the Eurozone, but it also underscores the need for individuals to reassess their financial strategies in light of evolving market conditions.