Analysis: Trump Has Yet to Alter European Central Bank's Plan

BlockBeats News, January 30th: The Dutch Central Bank stated that currently, Trump's plan has not substantially altered the Eurozone's economic outlook. Therefore, there is no reason to expect the ECB to change its rate-cutting path at this time.

The ECB Governing Council is increasingly expecting inflation to converge to the 2% target by 2025, allowing for another 25 basis point rate cut at the January policy meeting. However, the future uncertainty remains high.

Therefore, although the ECB may lean towards further rate cuts in the coming months, we believe the ECB also wishes to maintain its flexibility. Lagarde may avoid providing any forward guidance.

Overall, it is anticipated that the ECB will cut rates three times, lowering the deposit rate to 2.25% by April. This is based on the assumption that potential inflation will be stickier than the ECB's expectations. (Jinshi)