ECB rate cuts to accelerate on US tariffs — JPMorgan Chase

Analysts at JPMorgan Chase have concluded that a quadruple cut in interest rates by the European Central Bank (ECB) is just a matter of course due to the negative impact of US trade policy on the EU economy.

The bank's experts have detected a significant slowdown in economic progress across the eurozone. Given the prevailing trends, they anticipate GDP growth to be rather "weak" in the next three quarters. The situation is aggravated by rising prices. Inflation has already been on track to its target. New shocks may lead to its sudden speed-up, analysts believe.

While most ECB officials are cautious about making specific forecasts seeing a high level of uncertainty, expectations for new rate cuts have surged following Donald Trump's announcement of trade tariffs. According to Societe Generale economist Anatoli Annenkov, a substantial reduction in borrowing costs could be on the horizon as early as next week.