Markets see door wide open for more ECB rate cuts on tariff hit

Berlin, 22 Apr (Latin Press) The European Central Bank (ECB) today confirmed the halting of business investments in the eurozone due to fears associated with the US government's trade policy. The post Show Business Pessimism in Eurozone first appeared on News Prensa Latina.

The European Central Bank (ECB) has broken its extraordinary caution against inflation by lowering interest rates by 0.25 per cent, leaving the main one at 2.25%. It is the seventh consecutive decline, and the institution led by Christine Lagarde has justified it as an advance for the setback that Donald Trump’s tariff policy will bring to the European economy. Although the effects may have an impact on an increase in inflation, the ECB understa…

Markets see door wide open for more ECB rate cuts on tariff hit

The euro weakened and government bond yields across the bloc fell sharply as traders reacted to the dovish ECB message

"We are convinced that further cuts of rates are coming. The ECB's sense of urgency has clearly increased. However, everyone should already know that rate cuts alone will not protect the eurozone economy from current historical changes and challenges," they say in ING Economics. "For the future, we are still waiting for another cut of 25 basis points at the June meeting and another final cut of 25 basis points in September. The precise timing of…