ECB’s Knot Anticipates Rate Cuts in Early 2025, According to Reuters

AMSTERDAM (Reuters) – Klaas Knot, a member of the European Central Bank (ECB) governing council from the Netherlands, indicated on Tuesday that the ECB is expected to continue reducing interest rates at least through the first half of 2025, targeting a range between 2% and 3%.

In an interview with a Dutch television program, Knot stated, "I would expect us to continue to gradually reduce interest rates in the coming time, also in the first half of 2025."

Knot noted that he does not anticipate interest rates returning to the extremely low levels experienced before the pandemic. Instead, he suggested that rates would stabilize at a more natural level, beginning with the number two.

Earlier this month, the ECB lowered its deposit rate by 25 basis points to 3.50%, following a similar decrease in June.