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Institution: The European Central Bank's interest rate cut today has become a certainty, and further cuts are expected in the future.
Gate News bot message, Ronald Temple, Chief Market Strategist at Lazard Asset Management, stated that the continuous decline of inflation in the Eurozone, coupled with the consistently dovish rhetoric from European Central Bank officials, makes a rate cut this Thursday almost certain.
The European Central Bank had previously defined the interest rate range of 1.75%-2.25% as the neutral monetary policy level. “Any signals indicating a change in this view would be surprising. Given the United States’ more aggressive trade stance towards the EU, rates are still expected to drop to 1.5% before the end of the year.”
According to LSEG data, the currency market expects interest rates to be around 1.70% by the end of the year, slightly higher than strategists’ predictions.
Source: Jin Shi