(Bloomberg) -- The European Central Bank will cut interest rates in April 2024, not in June as previously expected, economists at Deutsche Bank said.

The Frankfurt-based ECB is expected to lower borrowing costs by a combined 150 basis points next year, with two half-point steps at the April and June meetings, analysts led by Mark Wall said Wednesday in a report to clients.

In light of recent inflation data and comments from policymakers, there’s even a “significant risk” of a cut in March, they said. 

“We are more pessimistic than the ECB on the near-term growth and inflation outlook,” according to the note. “If we are right, the ECB will be surprised further to the downside in the coming months.”

Traders ramped up ECB rate-cut bets after euro-zone inflation slowed more than anticipated in November. They now expect officials to take the key rate to 2.5% next year, in line with the assessment by Deutsche Bank’s analysts. 

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