UBS: Tariffs may cause the European Central Bank to lower interest rates below 2% before June.

GoldenOctober2024

2025-04-06 03:05:14

Jin10 data reported on April 6, UBS released a report stating that we believe that the European economic growth will also slow down, although the degree of slowdown will be less than that of the United States. If tariffs remain at their current levels throughout the summer, economic growth may drop by 50-100 basis points compared to a scenario of tariff removal. As for inflation, the EU’s retaliatory tariffs may lead to rising price pressures in the short term, but we believe that the mid-term effects of the trade war may suppress inflation in Europe. Coupled with weak economic growth, by June, the European Central Bank may lower interest rates to below our previous expectation of 2%.

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HeZi

· 2025-04-06 03:43

Steadfast HODL💎

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