The European Central Bank is expected to cut interest rates this Thursday, with rates possibly dropping to 1.5% by the end of the year.

According to data from Jin Shi, Ronald Temple, Chief Market Strategist at Lazard Asset Management, stated that Eurozone inflation continues to decline, coupled with the dovish language from European Central Bank officials, makes a rate cut this Thursday almost a certainty.

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