US tariffs will prompt ECB to cut rate this week — Bloomberg

The increase in US import duties will lead to a more pronounced slowdown in inflation in the eurozone than previously forecasted, Bloomberg reports, citing its own research.

According to experts surveyed by the agency, this strengthens the likelihood that the European Central Bank (ECB) will cut interest rates this week. Analysts surveyed also expect the bloc's economy to grow by only 0.8% this year. Their estimate was revised downward compared to the previous survey.

The Bloomberg poll was conducted before the announcement of the US decision to suspend the introduction of high tariffs against most countries in the world. Meanwhile, the European Union is planning to send the head of its trade department to Washington for negotiations.

Experts cited by Bloomberg emphasized that Trump's ambiguous actions on tariffs led to confusion among investors and trading partners, causing the dollar to fall.

At the end of last week, the euro strengthened to the highest level in three years. According to the agency, some traders are now betting on its strengthening to $1.20.