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# ECB Cuts Deposit Rate to 2.00%, Completing 200 Basis Points of Easing Since June 2024
- URL: https://www.theglobalbanker.com/ecb-cuts-deposit-rate-2-00-percent-june-2025/
- Published: 2025-06-05T15:43:00.000Z
- Updated: 2026-10-02T14:35:11.000Z
- Description: The European Central Bank reduced its deposit facility rate to 2.00% on 5 June 2025, its eighth cut that brings cumulative easing to 200 basis points over 12 months.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe, #archive

The European Central Bank cut its deposit facility rate by 25 basis points to 2.00% at its June 2025 meeting, delivering its eighth reduction and completing a full 200 basis points of easing since the rate-cutting cycle began in June 2024\. The Governing Council indicated that further easing would depend on incoming data.

The June decision brings the deposit facility rate to 2.00%, a level that the ECB has identified as lying within the range of its neutral rate estimate — the theoretical setting at which monetary policy neither stimulates nor restrains economic activity. 

#### EIGHT CUTS IN TWELVE MONTHS

The cutting cycle that began in June 2024 comprised eight cuts, interrupted only by a pause in July 2024\. 

The cumulative 200-basis-point reduction was from a peak of 4.00% reached during the ECB's tightening of 2022 and 2023\. 

Throughout the cutting cycle, the ECB maintained its data-dependent framework, committing to no predetermined rate path and insisting that each decision would be made on the basis of the most recent economic and financial data.