Investors maintained bets for further easing, pricing an additional 70 basis points of cuts during the rest of 2025, which would lower rates to near 2 per cent.

The European Central Bank cut interest rates again Thursday and signalled more to come as the eurozone economy flatlines, while

The fifth ECB rate cut since June, which had been well telegraphed to the market, lowered the rate that the central bank pays on deposits to 2.75% from 3.0%.

"The ECB is starting 2025 in a similar way to how it finished 2024, by cutting interest rates and signalling that it expects to ease policy again in the coming months. As in December, there is a judgement that 'monetary policy remains restrictive', which is an indication that the Governing Council still has further work to do."