· Xavier Fàbregas · 1 min read
ECB Meeting 06/03/2025: Another Rate Cut
The European Central Bank reduced official interest rates by a quarter point at its March 2025 meeting. This is the sixth consecutive 25 basis point cut since the ECB began its rate-cutting cycle in June 2024.
The European Central Bank reduced official interest rates by a quarter point during its March 6, 2025 meeting. This represents the sixth consecutive 25 basis point cut since the ECB initiated its rate-reduction cycle in June 2024, responding to moderating inflation and economic slowdown.
Following this reduction, the deposit facility rate stands at 2.50%, with main refinancing and marginal lending rates maintaining their standard differential above this level.
Outlook
The analysis projects two additional 25 basis point reductions before year-end, which would position rates between 2.0% and 2.25% by summer. However, sovereign curve yields across eurozone nations continue rising beyond one-year maturities, driven by commercial tensions and tariff concerns stemming from Trump administration policies.
Sources: ECB, analyst institutes, and Reuters.
