Bloomberg experts urge ECB not to delay final two rate cuts

A Bloomberg survey indicates the European Central Bank (ECB) will cut interest rates twice more this year. However, respondents warn the cuts must not be spaced too far apart. Otherwise, markets may conclude the easing cycle has already ended.

Bloomberg-quoted strategists forecast the European regulator will reduce borrowing costs by a quarter percentage point at each of its June and September meetings. By then, new quarterly reports will shed light on the consequences of the US administration's global trade restructuring.

According to the news agency, ECB officials believe it’s crucial to avoid causing further turbulence in an already unstable environment.

The current uncertainty has strengthened the euro, lowered oil prices, and slowed regional economic growth. Bloomberg analysts now believe EU inflation could reach the ECB's 2% target sooner than previously forecast. Nevertheless, risks, including supply chain disruptions and potential EU retaliatory tariffs, may reignite price pressures across the bloc.