Ulrik Carstens, economist at DWS, the German asset manager, said in a note that the ECB could cut its deposit rate by 25 basis points to 3.00 per cent on Thursday, rather than opt for a bigger 50 basis point cut. The outlook for the eurozone economy has deteriorated and the outlook for inflation has improved more than expected, though not enough for the central bank to cut rates sharply. Money markets now see an 87 per cent chance of a 25 basis point cut and a 13 per cent chance of a 50 basis point cut, according to LSEG data.