Analyst: Trump's victory will widen the policy divergence between the Federal Reserve and the European Central Bank

ChainCatcher news, Nomura Securities analysts stated in a report that a victory for Republican Donald Trump in the presidential election would widen the existing policy divergence between the Federal Reserve and the European Central Bank.

As the results show Trump returning to the White House, he claimed victory. They stated, "If actual inflation rises, we believe there is a risk that the Federal Reserve under Trump will halt the easing cycle." Meanwhile, they noted that the European Central Bank may be forced to take more aggressive action due to negative impacts on economic growth. However, Nomura Securities analysts indicated that the European Central Bank is very cautious and unlikely to preemptively cut interest rates. Therefore, as long as the data meets their expectations, Nomura Securities expects no 50 basis point rate cut in December. (Jin Shi)