Deposit rate seen falling to 3 from 3.25
Growth outlook weak and fraught with risks
U.S., France, Germany all add to heightened political risk
Decision at 1315 GMT, press conference at 1345 GMT

FRANKFURT, Dec 12 Reuters The European Central Bank is all but certain to cut interest rates again on Thursday and signal further easing in 2025 as inflation across the euro zone is nearly back at target and the economy is faltering.

The ECB has already cut rates at three of its last four meetings. Nevertheless the debate has shifted to whether it is easing policy fast enough to support an economy that is at risk of recession, facing political instability at home and the prospect of a fresh trade war with the United States.

That question is likely to dominate Thursday39;s meeting but policy hawks, who still command a comfortable majority on the 26member Governing Council, are likely to back just a small, 25basispoint cut, taking the benchmark rate to 3, nearly all economists in a Reuters poll said.

In a possible compromise with more dovish policymakers, the cut could come with tweaks to the ECB39;s guidance to make clear that further policy easing is coming provided there are no new shocks to inflation, which could ease to the central bank39;s 2 target in the first half of 2025.

The already restrictive policy stance, the deteriorating growth outlook, and inflation at target should all speak in favour of a 50 basis point cut, Danske Bank economist Piet Haines Christiansen…