PIMCO Manager Expects ECB to Maintain Rates Amid Uncertainty

On April 27, Pacific Investment Management Company (PIMCO) portfolio manager Konstantin Veit released a report indicating that the European Central Bank (ECB) is expected to keep interest rates unchanged during its April meeting, maintaining a cautious stance in a highly uncertain environment. According to Jin10, Veit stated, "At this stage, we still believe the ECB will remain vigilant rather than take action." He noted that if the ECB responds to inflation risks, any measures are likely to be gradual rather than aggressive. Veit also mentioned that the likelihood of more than two rate hikes is low. With rising risks to both economic growth and inflation, policymakers might wait until the next round of staff forecasts in June before making policy adjustments.