Faced with a stuttering economy, political turbulence in the eurozone and the prospect of renewed trade tensions with the United States, the European Central Bank is Thursday set to cut interest rates again.

The European Central Bank is all but certain to cut interest rates again on Thursday and signal further easing in 2025 as inflation in the euro zone is nearly back at its target and the economy is faltering.

The European Central Bank (ECB) is widely expected to cut interest rates on Thursday for the fourth time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.

Traders should wager on a slower pace of interest-rate cuts by the European Central Bank next year, according to Citigroup Inc., which says the market has gone overboard in betting on swift reductions.

The European Central Bank is expected to cut interest rates again this week amid a darkening outlook, with political turbulence in the eurozone's two biggest economies adding to the troubled picture.

President-elect Donald Trump's tariffs and political crises in France and Germany have darkened the outlook for the euro area.

The European Central Bank (ECB) will announce its interest rate decision tomorrow, with odds in favor of a 25 basis point cut, bringing the policy rate to 3.00%. This would mark a fourth cut this year.