Institution: The European Central Bank's interest rate cut today is a foregone conclusion, and further interest rate cuts are expected in the future
Ronald Temple, chief market strategist at Lazard Asset Management, said that inflation in the eurozone continues to fall, combined with the consistently dovish tone of European Central Bank officials, making it almost certain that interest rates will be cut this Thursday. The European Central Bank had previously defined the neutral monetary policy level as a range of 1.75%-2.25%. "Any signal of a change in this view would be surprising. Given the more aggressive trade stance taken by the United States against the European Union, it is still expected that rates will be cut to 1.5% by the end of the year." According to LSEG data, the money market expects rates to be around 1.70% by the end of the year, slightly higher than the strategist's forecast.
