Survey: Sticky inflation may sweep across Europe, Lagarde may be feeling "overwhelmed."
According to a survey of economists, concerns about inflation in Europe have resurfaced, raising doubts about whether the European Central Bank should pause or stop interest rate cuts in the spring; Economists surveyed have maintained their basic prediction of four rate cuts of 25 basis points each by the European Central Bank in 2025, but there is a divergence regarding the timing of these cuts; Respondents believe that USA policy is seen as the most severe threat to economic growth in the eurozone.
ECB Preview: Confidence Vs Uncertainty – Deutsche Bank
French Business Climate Remains Downbeat in January
Lagarde: The European Central Bank will continue to gradually lower interest rates, Europe must be prepared for Trump's tariffs.
Lagarde anticipates that Trump's tariffs will be "more selective and targeted," so Europe must "be prepared to predict what will happen" in order to respond. She also emphasized that the European Central Bank will consider gradual interest rate cuts, and policymakers are confident that the inflation rate will reach the 2% target by 2025.
The Global Banking Industry under Trump 2.0: Is the USA "rushing ahead" and Europe "falling behind"?
Trump's deregulation might boost the USA economy and alleviate the burden imposed by the Biden administration on the Banks, as the "animal spirits" begin to revive; however, if Europe regulatory agencies continue to adhere to rules like the Basel III Accord, European Banks may find themselves at a competitive disadvantage.
The euro has made a strong rebound! Will the European Central Bank continue to cut interest rates four more times?
On Wednesday (January 22), EUR/USD maintained above the key Resistance level of 1.0400 during the Europe Trade session, continuing the strong rebound momentum from Tuesday's North America Trade session. The market is assessing the latest tariff plans from the USA government to seek new Trade opportunities. In the past two days, USA President Donald Trump announced that he would impose a 25% tariff on Mexico and Canada starting February 1. At the same time, Trump also threatened to increase tariffs to compel Europe to purchase more Oil & Gas from the USA to address the Trade imbalance between the EU and the USA, although specific measures have yet to be clarified. Trump's tariff statement is more than his