The European Central Bank's main measure of future wage growth in the eurozone continues to show a sharp slowdown in salary growth in 2025, lending support to hopes of a further pullback in inflation that would allow for further interest rate cuts.
The European Central Bank's wage tracker, released on Wednesday, forecasts eurozone wages will grow at an annual rate of 1.5% through the fourth quarter of 2025. While that is up from the 1.4% forecast in December, it is also well below the 5.3% peak recorded last year. The indicator provides policymakers with timely wage data updates to help them assess how best to adjust borrowing costs. They cut the deposit rate for the fifth time last week to 2.75%.
The European Central Bank forecasts that wage growth will slow sharply this year, and further interest rate cuts are expected
2025-02-05 10:33:08
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