Danske Bank: The market generally expects the European Central Bank to cut interest rates by 25 basis points
ChainCatcher news, according to Jinshi reports, Danske Bank stated that the European Central Bank's policy decision is essentially ready to guide a further rate cut of 25 basis points, bringing the policy rate to 2.75%. This is the consensus expectation among analysts and the market.Given the recent general uncertainty surrounding the Trump administration and the ongoing resilience of the domestic economy, it is expected that there will be no new signals regarding the outlook for the European Central Bank's policy rate. Therefore, it is anticipated that the three-tier reaction function (inflation outlook, potential inflation, and the strength of monetary policy transmission) will prevail, and the European Central Bank is expected to reaffirm its data dependency.Additionally, the market expects the European Central Bank to cut rates by nearly 100 basis points this year. While we expect the rate cuts by the European Central Bank to exceed this, if Lagarde does not commit to the endpoint of the rate-cutting cycle, the market may once again experience the hawkish reaction seen in December.