policy

ECB Cuts to 2.25% — Seventh Consecutive Cut

| Recession Risk

The ECB cut its deposit facility rate by 25 basis points to 2.25%, its seventh consecutive cut since June 2024. The Governing Council cited ongoing weak eurozone growth, trade war headwinds from tariff escalation, and continuing disinflation. The ECB was approaching what many economists estimated as the 'neutral rate' range of 2.0–2.5%.