Investment banks cut expectations of ECB rate cuts
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11 hours ago 6,802
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Golden Finance reported that investors will continue to think about the impact of Germany's large-scale fiscal stimulus plan and the impact of Germany's plan to increase defense spending in the coming week. Germany's large-scale fiscal stimulus plan has led to a sharp rise in German government bond yields. Investors are particularly interested in how fiscal expansion will affect economic growth and inflation in Europe and how this will affect the European Central Bank's monetary policy. Vanguard and Alliance Bernstein have already expected the ECB to cut interest rates by smaller rates after the ECB cut deposit rates by 25 basis points to 2.50% this week. Vanguard is currently expected to cut interest rates only once this year, while Alliance Bernstein's forecast for the ECB's policy rate correction at the end of 2025 is 2%, higher than the previous estimate of 1.75%.