Saxo Bank: The European Central Bank will still cut interest rates this year
2025-03-18 18:06:55
The ECB will still cut interest rates this year, but Europe's planned fiscal stimulus could eventually lead to inflation, which will affect the interest rate outlook, says Jacob Falkenkorn of Saxo Bank. The planned fiscal stimulus is expected to lead to increased demand within Europe, which will add some inflationary pressures. The ECB could cut interest rates up to two times this year, he says. Money markets are currently pricing in two ECB rate cuts this year.
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