Trump has yet to change ECB plans

Odaily Planet Daily News Rabobank said that at present, Trump's plan has not substantially changed the economic outlook of the euro area. Therefore, there is no reason to expect the ECB to change its rate cut route at this time. The ECB Governing Council increasingly expects inflation to converge to the 2% target during 2025, which allows another 25 basis point rate cut at the January policy meeting. However, uncertainty in the future remains high. Therefore, although the ECB may be inclined to cut interest rates further in the coming months, we believe that the ECB also wants to maintain its flexibility. Lagarde is likely to avoid providing any forward guidance. Overall, the ECB is expected to cut interest rates three times, reducing the deposit rate to 2.25% by April, based on the assumption that potential inflation will be stickier than the ECB expects. (Jinshi)