State Street Global Investment Management said in a report that the ECB will face a challenging balancing act this week. Although fiscal stimulus measures within the EU may have a supporting effect in the medium term, new US tariffs and geopolitical tensions are seriously hampering economic prospects. In this environment, the ECB is likely to stick to its data-dependent route and clearly highlight the uncertainties in its communications. State Street Global Investments Management expects the ECB to cut interest rates by 25 basis points on Thursday, reducing deposit interest rates to 2.25%, in line with market pricing

State Street Global Investment Management said in a report that the ECB will face a challenging balancing act this week. Although fiscal stimulus measures within the EU may have a supporting effect in the medium term, new US tariffs and geopolitical tensions are seriously hampering economic prospects. In this environment, the ECB is likely to stick to its data-dependent route and clearly highlight the uncertainties in its communications. State Street Global Investments Management expects the ECB to cut interest rates by 25 basis points on Thursday, reducing deposit interest rates to 2.25%, in line with market pricing