Economics expects a turnaround in interest rates in the summer – the main concern remains the recession. Investors are wondering when the ECB and the US Federal Reserve will loosen monetary policy.
The ECB has been keeping interest rates unchanged since September 2023 after a series of increases in the fight against inflation. The deposit rate that financial institutions receive when they hoard excess funds with the central bank is 4.0 percent. The German ECB director Isabel Schnabel recently warned against lowering interest rates too early given the ongoing uncertainty regarding inflation developments.