Kaspar Hense, portfolio manager at Royal Bank of Canada's BlueBay Asset Management Company, said that after cutting interest rates by 25 basis points on Thursday, the ECB does not seem to be in a hurry to cut interest rates further, but US politics may push it to speed up the pace of interest rate cuts, thereby hitting the euro. The prospect of Trump winning the US presidential election in November and triggering a tariff war could force the ECB to take further action to weaken the euro and keep it competitive. However, until the new US president is sworn in on January 20, the ECB is likely to remain stable, that is, cut interest rates by 25 basis points per meeting and reduce interest rates to a neutral level by the summer of 2025.

Kaspar Hense, portfolio manager at Royal Bank of Canada's BlueBay Asset Management Company, said that after cutting interest rates by 25 basis points on Thursday, the ECB does not seem to be in a hurry to cut interest rates further, but US politics may push it to speed up the pace of interest rate cuts, thereby hitting the euro. The prospect of Trump winning the US presidential election in November and triggering a tariff war could force the ECB to take further action to weaken the euro and keep it competitive. However, until the new US president is sworn in on January 20, the ECB is likely to remain stable, that is, cut interest rates by 25 basis points per meeting and reduce interest rates to a neutral level by the summer of 2025.