Deutsche Bank now sees base case for ECB terminal rate forecast at 1.50%
The firm had previously penciled in the ECB to cut interest rates to 2.25% as their base case. So, this is 75 bps lower than that. With potential Trump tariffs on the cards, that's a key factor that could weigh on the euro area economy next year. So, that in turn creates downside risks to the ECB's rate outlook as well. This article was written by Justin Low at www.forexlive.com.
The firm had previously penciled in the ECB to cut interest rates to 2.25% as their base case. So, this is 75 bps lower than that. With potential Trump tariffs on the cards, that's a key factor that could weigh on the euro area economy next year. So, that in turn creates downside risks to the ECB's rate outlook as well.
