ECB Cuts to 2.00% — Signals Pause as Rates Near Neutral

The ECB completed its eighth consecutive rate cut since June 2024, reducing the deposit facility rate to 2.00%. President Lagarde signaled a pause as rates approached the estimated neutral level of 2.0–2.5%. In exactly 12 months, the ECB had cut rates by 200 basis points — the most aggressive sustained easing cycle since the eurozone debt crisis.