According to Jin Ten Data, Antonio Villarroya, head of G10 macro and fixed income strategy research at Santander Bank, pointed out in a report that the European Central Bank will cut rates by 25 basis points next Thursday, reducing the deposit rate to 2.00%. He stated that this could be the last easing of this cycle.
Villarroya believes that although the probability of interest rate cuts is lower than market pricing, the European Central Bank will retain the possibility of further cuts until the uncertainty related to US tariffs dissipates. He noted that short-term euro interest rates may rise in the coming months, but repricing may not happen immediately.