QNB expects the European Central Bank to cut interest rates by 150 basis points by mid-2025, bringing the key deposit rate to 1.75%.
QNB based its forecasts on restrictive monetary conditions, concerns about stagnation in activity, and downside risks to economic growth in the context of low inflation, which peaked at 10.6% in 2023.
The report expected that economic growth in the euro area would remain weak, with a decline in the number of new job opportunities, and it is likely that real GDP growth in 2024 and 2025 will remain below the long-term average of 1.4%.
