The European Central Bank could continue to reduce interest rates as eurozone inflation approaches its target, Bundesbank President Joachim Nagel said.

The European Central Bank will trim its deposit rate again next week to 2.50%, according to all 82 economists polled by Reuters who expected two further cuts by the middle of this year.

In the latest macro projections, we expect the ECB to maintain its inflation forecasts but lower its GDP growth projections for this year. In December, ECB staff projected GDP growth at 1.1% for 2025 and 1.