Citi Group has projected that the European Central Bank (ECB) will reduce interest rates by 25 basis points during its upcoming meeting on October 17. This forecast aligns with ECB President Christine Lagarde's recent remarks at a European Parliament hearing, where she indicated increased confidence in returning inflation to target levels.
Citi further anticipates additional rate cuts by the ECB in December and early 2025. The policy rate is expected to decrease to 1.5% by September 2025.
