European Central Bank Expected to Cut Interest Rates This Thursday, with Year-End Rate Possibly Dropping to 1.5%

According to data from Jinshi, Ronald Temple, chief market strategist at Lazard Asset Management, stated that eurozone inflation continues to decline, and the dovish rhetoric from European Central Bank officials makes an interest rate cut this Thursday almost a certainty.

The European Central Bank previously defined the interest rate range of 1.75%-2.25% as a neutral monetary policy level. Any signals indicating a change in this view would be surprising. Interest rates are expected to fall to 1.5% by the end of the year.

According to LSEG data, the money market expects interest rates to be around 1.70% by the end of the year, slightly higher than the strategists' forecast.