Bloomberg columnist says Europe needs more decisive ECB monetary action

According to Bloomberg columnist Marcus Ashworth, at the upcoming meeting on Thursday, the European Central Bank (ECB) should not be influenced by global trade disputes and volatility in international markets. The financial regulator will cut its deposit rate by a quarter percent to 2.25%, the expert says.

However, Ashworth believes that in the current unfavorable conditions, the reduction should amount to 50 basis points. Eurozone economic indicators have not improved since the ECB's last monetary easing. In Germany, GDP growth forecasts have deteriorated and investor confidence has fallen. A stronger euro also poses challenges for the region's economy, making it more vulnerable to trade risks.

The ECB's main fear in easing monetary conditions has always been the possibility of accelerating inflation. However, as Ashworth highlights, all recent data points to price growth levels approaching the 2% target. For example, core inflation in the eurozone fell from 2.6% to 2.4% in March.

Therefore, the expert is convinced that the ECB should take more decisive monetary measures to support the economy and avoid recession risks in the bloc.