In accordance with expectations ... the European central reduces interest to 2%

Today, Thursday, the European Central Bank has lowered interest rates for the eighth time, with a quarter of a percentage point to 2% on deposits, amid the blurring of the prospects for inflation and economic growth in Euro countries, due to unrest in global trade due to the fees of US President Donald Trump. According to all analysts included in the ‘Bloomberg’ poll, the European Central is likely to make an extra interest rate in September, with negotiations with the end of the United States and the issuance of new expectations showing the full impact of customs duties. Despite the possibility of decreasing growth and inflation in the eurozone in the coming months, the major European expenses to defense and infrastructure may rise in the long run, making it “difficult to accurately control monetary policy,” according to Yari Stein, the chief economist of European matters in “Goldman Sachs”. The European President of the Central Bank, Christine Lagarde, praised a press conference in Frankfurt after announcing the interest decision that “our decision to reduce interest today is based on the slowdown of the basic inflation and the strength of the monetary policy impact, and reflects the decline in energy prices and the strength of the euro … companies reduce. ” Lagarde indicated that the increase in government spending on defense and infrastructure would support growth in medium term. As for the expected interest decisions, the European central central president confirmed that “there is no predetermination to a specific path of interest rates, and that every decision will be according to data and meetings.” The following decisions scenarios, the economic experts, expect the European Central Bank to stop next month to lower interest rates, but warn that the market’s strike could end the market for a long time that the bank has finally ended the reduction of the reduction. While about 30% of analysts in a recent survey see that the European Central Bank’s executive council can only reduce the interest once before reducing operations has completely stopped, while a quarter of respondents believe it may stop reducing the interest in two consecutive meetings. Traders bet that there is one last step after the expected stop in July, bringing interest rates on deposits to 1.75%. It falls on the minimum series set by the European Central Bank as a neutral, that is, does not stimulate the economy or limit it. The European Central Today expects inflation to 2%this year, from 2.3%, as in March forecast. The eurozone economy grows 0.9% in 2025, unchanged from March’s expectations.