Economist: The European Central Bank's interest rate path is clearer than that of the Federal Reserve

ChainCatcher news, Jefferies global economist Mohit Kumar stated that given the European Central Bank has already begun to cut interest rates, its rate path is much clearer than that of the Federal Reserve.

Regarding the upcoming meeting of the European Central Bank on Thursday, Jefferies predicts that the bank will cut rates by 25 basis points, in line with market expectations. He said in a report: "We expect the European Central Bank to gradually cut rates by 25 basis points each quarter in the upcoming meetings, depending on the data, bringing rates below 3%." Kumar mentioned that if economic growth and inflation data meet expectations, the trough for the European Central Bank's rates is expected to be around 2.50%-2.75%. The current deposit rate of the European Central Bank is 3.75%. (Jin Shi)