ECB’s Knot says further rate cuts coming through at last H1 of 2025

Klaas Knot is President of De Nederlandsche Bank (DNB) – the central bank of the Netherlands – and thus a European Central Bank (ECB) Governing Council member.

He spoke with Dutch TV programme Nieuwsuur:

“I would expect us to continue to gradually reduce interest
rates in the coming time, also in the first half of 2025,”

“I don’t expect rates to return to the extremely low levels
we saw before the pandemic. They will likely end up on a
somewhat more natural level. I don’t know where exactly, but
somewhere starting with a 2,”

Info via Reuters.

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The European Central Bank cut its deposit rate by 25 basis points to 3.50%
earlier in swpt. It began its rate cutting cycle with a 0.25% cut in June.

This article was written by Eamonn Sheridan at www.forexlive.com.