survey of institutions showed that analysts interviewed expect the European Central Bank to cut interest rates twice again this year, and no longer expect the bank's rates to fall below 2%. The monthly survey shows that after six rate cuts so far, the European Central Bank may still cut rates in April and June. However, unlike the previous survey, respondents expect the deposit rate (currently at 2.5%) to remain at 2% by the end of the survey period. In mid-February, a slight majority had expected rates to eventually drop to 1.75% by March 2026. European governments plan to significantly increase defense spending, which could boost sluggish economic growth and exacerbate inflation.