ECB’s Kazaks: The ECB will soon reach terminal rate if baseline holds

• 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.