The weakening inflation outlook in the Eurozone supports the European Central Bank's interest rate cuts.

Jin10 data reported on April 14, a survey by an institution shows that inflation in the Eurozone will be lower than previously predicted due to the United States raising tariffs. This survey supports the rationale for the European Central Bank to cut interest rates this week. Analysts expect the average consumer price increase for 2026 and 2027 to be 1.9% and 2%, respectively, both of which have been revised down by 0.1 percentage points. They also expect this year’s economic growth rate to be 0.8%, slightly lower than previously expected, after which economic growth momentum is expected to recover. In another survey, economists predict that the European Central Bank will cut interest rates twice more in April and June. Greg Fuzesi, an economist at JPMorgan Chase, stated, “Even if the U.S. suspends tariffs, the interest rate cut in April still makes sense.” He added, “The rate cut in June may also not cause much controversy,” but the path afterwards depends on how trade negotiations with the U.S. develop.