According to ChainCatcher, analysts Claus Vistesen and Melanie Debono from Pantheon Macroeconomics believe that amid increasing economic uncertainty, the European Central Bank may choose to remain cautious and maintain interest rates at its meeting this month. Data this week shows that the Eurozone's annual overall inflation continues to slow down, approaching the ECB's 2% target, with core prices also declining. However, Vistesen and Debono note that risks from energy prices and other factors remain in the coming months.
Meanwhile, Europe is facing economic growth pressure from turmoil and trade tariffs, while also needing to address the uncertain impacts of internal stimulus plans in infrastructure, particularly in the defense sector.