ECB and Euro Area Economy Monitor - 2025-03-05

The good news from the ECB is that they expect inflation slightly below target next year. The bad news is that they are downgrading growth expectations. With one more 25 bp rate cut today, they say policy is "meaningfully less restrictive," which implies it is still restrictive. No mention in the statement of tariffs specifically -- only the code-phrase "rising uncertainty." Fair enough.