31 January 2025 – Yesterday, the European Central Bank (ECB) unanimously lowered its key interest rates by 0.25 percentage points. The deposit rate now stands at 2.75 per cent. The rally on the German stock market continues: The German share index DAX could reach its tenth all-time high in 2025 today.
ECB focuses on stable monetary policy and positive inflation trends
Yesterday, the European Central Bank unanimously lowered its key interest rates by 0.25 percentage points. The deposit rate now stands at 2.75 per cent. ECB President Christine Lagarde emphasised that monetary policy will continue to be based on current economic data and will be decided from meeting to meeting – a clear signal in favour of flexible and prudent management.
ECB expects inflation to continue to fall over the course of the year
Despite global uncertainties, Lagarde was optimistic: inflation in the eurozone stood at 2.4 per cent in December, but the ECB expects it to fall further over the course of the year. In addition, the economic team is working on new estimates for the neutral interest rate in order to find the optimal balance between growth and stability.
The markets expect a deposit rate of around two per cent by the end of the year – an indication that the ECB is moving towards a growth-friendly monetary policy.
German stock index DAX continues on record course
The rally on the German stock market continues: The DAX could reach its tenth all-time high in 2025 today. Following the ECB’s latest interest rate cut, the leading index set a new record yesterday at 21,732 points.
Focus shifts to the 22,000-point mark
Pre-market indications also point to a continuation of the upward trend. According to experts, the 22,000-point mark is increasingly coming into focus. While the path to this level harbours challenges, analysts already see the next milestone at 21,935 points. The positive market sentiment thus remains intact.
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