Analysis-Markets see door wide open for more ECB rate cuts on tariff hit By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 17 2025
0mins
Source: Investing.com
ECB Interest Rate Cuts: The European Central Bank (ECB) has cut interest rates by 25 basis points to 2.25% in response to economic challenges exacerbated by U.S. tariffs, with traders now anticipating further cuts and a significant chance of a June rate reduction.
Market Reactions and Inflation Concerns: Following the ECB's decision, euro weakened and bond yields fell sharply, while inflation expectations remain uncertain, with some economists predicting inflation may drop below the ECB's target, complicating future monetary policy decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
