Goldman Sachs: Trump's tariffs support three ECB rate cuts before summer

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MarsBit
04-04
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Mars Finance News, on April 4th, Goldman Sachs economists stated that the latest U.S. tariffs have increased the likelihood of the European Central Bank (ECB) cutting interest rates this year, including in April. In a report, they noted that the strong euro and more aggressive tariffs on East Asia and other parts of Europe mean the Eurozone faces downward inflation risks, which increases the possibility of the ECB cutting rates three times, with the ECB deposit rate expected to drop to 1.75% by July. Financial conditions have also tightened since the tariff announcement. Moreover, the U.S. government's tough rhetoric on foreign retaliation suggests a higher risk of escalating trade tensions, which could push the Eurozone into a technical recession. After assuming trade-related impacts, Goldman Sachs currently forecasts the Eurozone's growth rate for 2025 at 0.8%. (Jinshi)

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