Economists in the ECB's Survey of Professional Forecasters now see inflation next year at 1.9%, below the 2% predicted three months ago, and see it holding at 1.9% in 2026. This is somewhat quicker than the ECB's own forecast, which puts inflation back at target only in the final quarter of 2025, and sees the year's average at 2.3%.

FRANKFURT — The European Central Bank cut its key interest rate by a quarter-point to 3.25 percent, as a souring growth outlook and weaker-than-expected inflation in September drove rate-setters to step up the pace of policy easing.

The European Central Bank (ECB) is widely expected to cut interest rates today. If a reduction happens it would automatically benefit tracker mortgage customers and put downwards pressure variable rates. The ECB had increased rates in an effort to reduce inflation two years ago.