100 BP cut in ECB rates in 2025


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