Institution: The European Central Bank's interest rate cut today has become a foregone conclusion, and further cuts are expected in the future
ChainCatcher news, Lazard Asset Management's Chief Market Strategist Ronald Temple stated that the continued decline in inflation in the Eurozone, along with the consistently dovish rhetoric from European Central Bank officials, makes a rate cut this Thursday almost a certainty.
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 more aggressive trade stance the U.S. has taken towards the EU, a rate cut to 1.5% is still expected by the end of the year."
According to LSEG data, the money market expects the interest rate to be around 1.70% by the end of the year, slightly higher than the strategists' forecast.