Knot from the ECB predicts interest rate cuts in the first half of 2025, by Reuters

AMSTERDAM (Reuters) – The European Central Bank (ECB) is likely to keep cutting interest rates until at least the first half of 2025 to between 2 percent and 3 percent, board member Klaas Knot said on Tuesday of the Dutch ECB.

“I would expect us to continue to gradually reduce interest rates in the period ahead, and in the first half of 2025,” Knot said in an interview with Dutch TV program Nieuwsuur.

“I don’t expect rates to go back to the extremely low levels we saw before the pandemic. They’ll probably go to a somewhat more natural level. I don’t know where exactly, but somewhere starting with a 2,” he added . .

The ECB cut its deposit rate by 25 basis points to 3.50% earlier this month, following a similar cut in June.