The European Central Bank is tipped to slash borrowing costs three more times this year

 

bringing its key deposit rate down to 1.5% by the end of 2025, according to analysts at Deutsche Bank.

But in a note to clients, the brokerage warned that there are "two-sided risks" to this estimate.

In one scenario, the implementation of partially-delayed U.S. tariffs leads to a "growth shock" in the eurozone, persuading the ECB to bring policy rates below the 1.5% level.

Another outcome revolves around broader economic "resilience" stopping an ongoing ECB rate easing cycle before borrowing costs dip to 1.5%