After this week's rate cut further ECB moves are in question – Bloomberg

According to Bloomberg, the European Central Bank (ECB) is set to cut the deposit rate for the eighth consecutive time this week, lowering it to 2%. However, this will be the last easy decision for the regulator, as analysts quoted by the agency said, as further action is complicated by uncertainty.

Central bank officials disagree over the possible impact the global trade tensions over US tariffs will have on the dynamics of price growth and economic expansion in the eurozone.

According to Bloomberg reports, some ECB officials, led by Isabel Schnabel, would like to limit the rate cut to 2%, fearing a sharp increase in spending by European governments. Meanwhile, others, including Pierre Wunsch and Gediminas Simkus, are willing to continue easing monetary conditions to support weak economic growth.

With price growth approaching the 2% target, investors still believe another rate cut will come after this week. Analysts surveyed by Bloomberg forecast cuts in June and September to a final target of 1.75%.