The European Central Bank is expected to cut rates by 25 basis points, possibly the last cut of this cycle.

According to Jintian Data, Laura Cooper, head of macro credit and investment strategy at Nuveen, stated that the European Central Bank is expected to cut rates by 25 basis points, which may be the last rate cut of this cycle.

She stated that the upcoming fiscal stimulus measures in Europe will give policymakers more confidence to remain cautious before the end of the year in order to assess the impact of infrastructure and defense deployments.

The decline in energy prices, fiscal stimulus measures, and reduced risks of a global economic recession call for a wait-and-see approach regarding further policy actions. LSEG data shows that the market fully expects a 25 basis point rate cut on Thursday and anticipates another rate cut before the end of the year.