IMF Proposal for Interest Rate Reduction by ECB
April 28, 2025
The IMF recommends that the ECB reduce the deposit rate to 2% this summer, as inflation in the Eurozone is expected to reach the 2% target by 2025. This forecast is supported by decreasing energy prices and reduced demand due to the US trade war. However, risks to growth in Europe remain negative due to uncertainty in trade policies. It is essential for European countries to implement balanced economic policies to ensure stability.