Traders Anticipate ECB Rate Cuts of 158 Basis Points Through 2025, 80bps Cuts Expected Next 12 Months

Traders are increasingly betting on interest rate cuts by the European Central Bank (ECB), with expectations for a reduction of 158 basis points through 2025. This sentiment follows recent economic indicators, including the Consumer Price Index (CPI) print, which has influenced market perceptions regarding future monetary policy. The shift in trader sentiment suggests a growing belief in easing monetary conditions in the eurozone as economic challenges persist.