(Reuters) - The European Central Bank (ECB) will deliver its first interest rate cut by 25 basis points in June 2024, Morgan Stanley (NYSE:MS) economists said in a note on Sunday.
The rate reductions would "go all the way down" to 2.0% in September 2025, they added.
"We think that the ECB has reached its peak rate at 4%. From here, it is slowly pivoting away its attention from contemporaneous inflation to forecasts," said Jens Eisenschmidt, chief Europe economist at the bank.