Traders Boost ECB Easing Bets, Expect Three More Cuts Totaling 55 Basis Points, Deposit Rate at 1.62% in December

Traders have increased their bets on the European Central Bank (ECB) easing monetary policy, now anticipating three additional rate cuts within the year. Money markets have adjusted their expectations for the ECB deposit rate, pricing it at 1.62% in December, down from the previous 1.71% before the ECB statement. This shift reflects growing market sentiment favoring further ECB rate reductions totaling approximately 55 basis points over the course of 2025.