Institution: Tariff Uncertainty May Prompt the European Central Bank to Cut Interest Rates More Than Once

BlockBeats News, July 23rd, Analyst Gabriele Foa from Algebris Investments stated in a report that due to tariff uncertainty, the European Central Bank's interest rate cut may exceed the market's current expectations. This portfolio manager stated: "Trade tensions and tariff developments may result in the endpoint of the rate-cutting cycle being slightly lower than the current market expectations."

LSEG's data shows that the money market currently anticipates the ECB to cut rates by another 25 basis points in December. Foa suggested that the spillover effects of tariffs on Europe may take longer to materialize. (FX678)