The Bank of England is preparing to announce a rate cut  – from 4.75% to 4.5% widely expected. After two cuts last year, financial markets are expecting three reductions during 2025, to leave the base rate at 4% by the end of the year.

French inflation was slightly lower than expected in January, coming in at 1.4% according to the national index, and should remain subdued over the course of 2025.

In January German headline inflation fell to 2.3% year-on-year, from 2.6% year-on-year  in December. Core inflation came down to 2.9% from 3.3% year-on-year.   Inflation to stay within the 2% to 2.5% range this year, per ING Bank’s forecast.