ECB and Euro Area Economy Monitor - 2025-06-04

The ECB seems to be listening to Trump, even if the Fed isn't -- another 25 bp rate cut. That's the eighth cut for the deposit facility rate (Trump's "truth" yesterday said there were nine cuts already, when there were seven -- oh well). The key is that the ECB is, finally, willing to declare victory over inflation which is now slightly below target, indeed to lower staff projections for future inflation. And that's with all those rate cuts! Apparently the ECB has paid no price for deciding not to be "too late," as Trump would put it.