European Central Bank Expected to Cut Interest Rates Amid Economic Trends

According to BlockBeats, Rothschild Wealth Management analyst Bastian Freitag anticipates that the European Central Bank (ECB) will reduce interest rates by 25 basis points next week, bringing the deposit rate down to 2.00%. Freitag, who leads the German fixed income division, cites slowing inflation, stable inflation expectations, and weakening wage growth momentum as factors supporting the ECB's decision to lower rates in June. The wealth management firm's baseline expectation is that after the June rate cut, the ECB may pause further actions, although a subsequent reduction to 1.75% is not ruled out.