Analysts at Validus Risk Management report that the European Central Bank (ECB) is preparing to ease monetary policy more actively. A change in pace comes as policymakers reassess global trade conditions and regional economic performance.
The firm anticipates the ECB will cut interest rates by 25 basis points at its upcoming meeting on Thursday. This would mark the seventh rate reduction since June 2024, following April's decision to lower the deposit facility rate to 2.25%.
Meanwhile, the euro has appreciated nearly 11% against the US dollar year-to-date. According to Harun Thilak, expert at Validus Risk Management, a stronger euro poses challenges for export-dependent EU economies, particularly during current market volatility caused by persistent trade uncertainties.
Earlier, the US presidential administration threatened to impose 50% duties on EU-imports from June 1, but then postponed them until July 9.