The European Central Bank predicts that wage growth will slow significantly this year, with further interest rate cuts expected

ChainCatcher news, according to Jinshi reports, the main indicator that the European Central Bank uses to measure future wage growth in the Eurozone continues to show that wage growth will significantly slow down in 2025, which supports hopes for further declines in inflation, allowing for additional interest rate cuts.

The wage tracking report released by the European Central Bank on Wednesday predicts that by the fourth quarter of 2025, wages in the Eurozone will grow at an annual rate of 1.5%. Although this is an increase from the 1.4% predicted last December, it is still far below the peak of 5.3% recorded last year. This indicator provides policymakers with timely updates on wage data, helping them assess how best to adjust borrowing costs. Last week, they lowered the deposit rate for the fifth time to 2.75%.