06:52 AM EST, 01/27/2025 (MT Newswires) -- The European Central Bank will ease policy by a further 25bps this week, taking the deposit rate to 2.75%, said Daiwa Capital Markets.

The ECB is slated to publish its policy statement on Thursday, at 8:15 a.m. ET.

While the ECB will insist that policy remains data-dependent and isn't on a pre-set path, the Governing Council will signal the likelihood of further easing to a neutral stance over the near term, stated Daiwa.

However, while ECB President Christine Lagarde will restate that disinflation remains on track and inflation should be back on target by mid-year, the bank doesn't expect her to flag the possibility of an eventual shift into accommodative territory.