The ECB Cuts Key Interest Rates Again
The European Central Bank (ECB) lowered key interest rates by 0.25 percentage points on June 5, 2025 – marking the eighth cut in a row. The deposit rate now stands at 2.00%, the main refinancing rate at 2.15%, and the marginal lending facility at 2.39%. This decision comes against the backdrop of ongoing disinflation, as inflation in the Eurozone approaches the target rate of about two percent.
Cautious Signals from the ECB Council
Several members of the ECB Council have recently indicated that the easing course of monetary policy may be ending or paused. Given the subdued inflation and stabilized economic growth in the Eurozone, analysts like Ulrike Kastens from DWS see room for another rate cut in July, but then expect little further action. Other experts also foresee no additional interest rate moves after July for the time being, although some market participants are still factoring in another cut.
Impact on Interest Rates and Markets
- Interest Rate Level: The key rates are likely to remain at current levels, which means persistently low interest rates for savers.
- Lending: Lending, particularly in the real estate sector, shows stable growth rates, as the current interest rate level no longer hinders investments.
- Market Expectations: Many market participants expect a monetary policy hold phase, which could be revised due to new risks.
- Investor Strategy: Investors should be prepared for the possibility that no further monetary policy impulses will follow after the meetings in July and September, creating planning uncertainty.
Conclusion
The ECB has lowered its key interest rates again but signals a cautious attitude in further monetary policy. Decreasing inflation rates and stabilized economic growth could mean a pause in the easing cycle, with no major changes expected in the short term. For savers and investors, the low interest rate environment remains a constant.
Important Dates
| Date | Event |
|---|---|
| July 24, 2025 | Next ECB Interest Rate Decision |
| September | Possible Further Important Meeting |
These developments are particularly relevant for readers interested in finance and capital market developments in the Eurozone.