ECB Prepares for Final Rate Cut Amid Global Market Reactions

The European Central Bank (ECB) is expected to announce a 25-basis-point interest rate cut at its final meeting of 2024, bringing the deposit facility rate to 3%. This decision comes amid persistent core and services inflation, despite headline inflation nearing the ECB's 2% target. Economists anticipate a lively debate over the rate cut size, with a focus on macroeconomic projections and potential shifts in ECB's policy language. The ECB's gradual rate cuts aim to support economic growth in 2025, as analysts predict continued easing until September 2025.