ECB lowers interest: hopes for economic growth disappear!

ECB lowers interest: hopes for economic growth disappear!

Brüssel, Belgien - The European Central Bank (ECB) made a significant decision on March 6, 2025 and reduced the key interest rate again. This is the sixth interest rate reduction since summer 2024. According to Vol.at , the forecast for economic growth was reduced to a lean 0.9 percent this year. In December the estimate was still 1.1 percent. The ECB expects the gross domestic product (GDP) to increase to 1.2 percent by 2026, which was also more optimistic, while the inflation look for 2025 was raised to 2.3 percent.

The effects of the interest rate reduction can already be felt on the financial market. Falling interest rates can result in an increased demand for risky systems, while the returns are falling on systems, such as Verwertsteuechner.de Analysts expect the key interest rate to be between 1.75 and 2.25 percent by the end of 2025, with a further reduction in 25 basis points will be discussed next April. The ECB Council emphasizes that future decisions depend on current economic data and that you do not commit yourself to a fixed interest path.

For savers, the renewed key interest rate is not a good news, since banks usually reduce interest rates for daily and fixed money if they receive lower interest rates for deposits from the ECB. In order to support economic growth, experts advise that cheap loans could stimulate companies to invest more in growth and investments. These dynamic changes could potentially boost economic activity and bring about a positive turn for the European economy.