> ## Content Index
> Fetch the complete content index at: https://www.theglobalbanker.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# ECB Cuts Deposit Rate to 2.50% in Sixth Cut Since June 2024, Signals Less Restrictive Stance
- URL: https://www.theglobalbanker.com/ecb-cuts-deposit-rate-2-50-sixth-consecutive-march-2025-less-restrictive/
- Published: 2025-03-06T13:53:00.000Z
- Updated: 2026-10-29T09:39:26.000Z
- Description: The ECB cut its deposit facility rate by 25bps to 2.50% on 6 March 2025, its sixth reduction since June 2024, signalling monetary policy was becoming meaningfully less restrictive.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe, #archive

The European Central Bank reduced its deposit facility rate by 25 basis points to 2.50% at its monetary policy meeting on 6 March 2025, delivering its sixth cut since reductions began in June 2024\. The Governing Council simultaneously lowered the main refinancing rate to 2.65% and the marginal lending facility rate to 2.90%, with all three changes taking effect from 12 March 2025.

The decision marked a cumulative reduction of 150 basis points from the ECB's peak policy rate of 4.00%, achieved through six quarter-point cuts, with a pause in July 2024\. In its post-meeting statement, the ECB described monetary policy as becoming 'meaningfully less restrictive'.

#### INFLATION PROGRESS AND GROWTH RISKS

The Governing Council cited continued progress in bringing inflation towards its 2% target as the primary justification for the March reduction. Consumer price growth in the euro area has moderated from the elevated levels recorded in 2022 and 2023, and the ECB's updated projections indicate that inflation is on track to converge sustainably with the target over the policy-relevant horizon. 

At the same time, the Council acknowledged a more uncertain growth outlook for the euro area. Escalating trade tensions, including potential United States tariffs on European goods, and broader policy uncertainty were cited as downside risks to growth, while higher defence and infrastructure spending was seen as a possible support to growth. 

The ECB reiterated that it would follow a strictly data-dependent approach at each successive meeting, declining to pre-commit to a specific terminal rate or a fixed schedule of further reductions.

#### NEUTRAL RATE ESTIMATES

ECB staff estimates published in February 2025 placed the euro area neutral rate in a range of roughly 1.75% to 2.25%. 

The ECB's next monetary policy meeting is scheduled for April 2025.