Inflation in France and Spain slowed more than expected, supporting the European Central Bank's rate cut.
The inflation rates in France and Spain are lower than expected, which supports the expectation of further interest rate cuts by the European Central Bank.
ECB officials: Trump's tariff policy increases the complexity of interest rate decision-making.
① Member of the Executive Board of the European Central Bank and Governor of the National Bank of Belgium, Pierre Wunsch, stated that US President Donald Trump's tariff policy has made the interest rate path of the European Central Bank "more complex"; ② The European Central Bank will hold its next interest rate meeting on April 17, and the market expects the probability of policymakers lowering rates by 25 basis points at that time to be around 79%.
Analyst: The British Pound rose after the budget announcement, but the fiscal plan may not be bullish.
Chris Turner, an Analyst at ING, pointed out in a report that the British Pound slightly rose after the UK's budget announcement on Wednesday, but the budget itself had limited impact on the pound. On that day, the pound fell against the dollar mainly due to UK inflation data falling short of expectations and news of increased tariffs on auto imports in the USA. Turner believes that although the UK fiscal spending plan helped the pound 'avoid disaster,' the proposal may not constitute a substantial Bullish signal. ING predicts that the UK may raise taxes by the end of the year, suggesting that the market's current expectations for a rate cut by the Bank of England this year may be underestimated. According to FactSet data, the British Pound is rising against the dollar.
Sterling Rises After Largely Surviving U.K. Budget -- Market Talk
Gilt Yields Risk Moving Higher If Inflation Persists or Global Bond Yields Increase -- Market Talk
European Equities Track Mostly Lower in Wednesday Trading; UK Inflation Slows to 2.8%
