According to Citi, the ECB May Cut Rates Slower than Markets Expect Next Year

According to Citigroup, the European Central Bank (ECB) may implement interest rate cuts at a slower pace than the markets expect next year. Citi strategist Searle stated that the market's expectation of a rapid decline is "overdone."

In the money markets, it is anticipated that the ECB will make cuts at each meeting until June next year, with a single reduction expected in the second half of 2025. Jamie Searle from Citigroup believes that positioning against this expectation represents an "unmissable opportunity," especially if President-elect Donald Trump imposes additional tariffs on the region.