Goldman Sachs sees ECB lowering rates by 25 bps in each meeting from April

(Reuters) – The European Central Bank (ECB) will cut interest rates by 25 basis points (bps) in each meeting starting April next year, Goldman Sachs wrote in a note on Thursday.

Economists at the brokerage forecast ECB’s deposit rate reaching 2.25% by early 2025 from the current rate of 4%.

“We view April as somewhat more likely given our expectation for firmer growth, the ongoing strength in wage growth and more data to confirm the slowdown in underlying inflation,” the economists said.

They had earlier forecast the central bank would cut rate by 25 bps per quarter.

(Reporting by Roshan Abraham in Bengaluru; Editing by Krishna Chandra Eluri)