ECB's Kazaks: The ECB will soon reach terminal rate if baseline holds ...Middle East

The ECB will soon reach terminal rate if baseline holds.Interest rate cuts are nearing an end assuming inflation stabilises at 2% over the coming months.It's important to analise alternative scenarios amid the trade uncertainty.If either inflationary or deflationary risk scenario materialises, monetary policy will react accordingly.

The market sees the terminal rate for the ECB around 1.75%, which is equivalent to two more 25 bps cuts.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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