Market Outlook - ECB's Projected Neutral Interest Rate Range is 1.5%-2.5%

According to BNP Paribas (EPA:BNPP) Markets 360, the European Central Bank's estimated neutral interest rate range is broad, between 1.5% and 2.5%. BNP Paribas analysts stated, "We continue to expect the ECB to cut rates by 25 basis points at each meeting until it reaches 2%, which is the midpoint of our estimated neutral range of 1.5%-2.5% for the deposit rate." Due to short-term growth risks, BNP's base scenario sees a possibility of rates falling below 2%, with a "slow but steady recovery" and inflation stabilizing around 2%.