03
Jan

100 BP cut in ECB rates in 2025
Resilient domestic demand. Potentially stronger Q4. Leading indicators still uncertain. Inflation stabilizing near +2%. ECB cuts 100 bps by 2025. Difficult situation for the euro. Opportunities in financial markets.
Key points
- Economy holds up thanks to domestic demand
- Q4 may prove stronger than expected
- Leading indicators strengthen without conviction
- Household confidence remains hesitant
- Inflation stabilizes around ECB target
- ECB to cut rates by a further 1% in 2025
- Positive but moderate outlook for eurozone bond markets
- Weak economic conditions continue to weaken the euro
- Attractive average yields and price/net asset ratios
- Persistent hesitation in European equity indices