Market Analysis: ECB interest rates may need to be lower than neutral
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Golden Finance reported that PGIM Fixed Income said in a report that its benchmark interest rate may need to fall below neutral if the ECB repeatedly predicted accelerated economic growth fails to achieve. The bank expects the European Central Bank's neutral interest rate range to be between 1.5% and 2.5%, slightly lower than the current deposit rate of 2.75%, and by the end of this year, the market will be priced at 1.91%. The report said that given the weak macroeconomic situation, the European economy is more vulnerable to increased trade tensions. Nevertheless, Europe is better prepared than it was when it was implemented in the last round of tariffs and has a significant influence in negotiations or returns. (Jin Shi)