Kapital Macro: European Central Bank expected to further cut interest rates

Jinshi data on December 16th, Keito macro analyst Jack Allen-Reynolds said that the preliminary value of the PMI shows that economic activity in the euro zone continued to slow down this month, which will further stimulate the European Central Bank to cut interest rates. The PMI is still below the level of October, which is consistent with economic contraction in the past. This will strengthen the view of European Central Bank policymakers that they should further reduce interest rates based on the basis of dropping borrowing costs last week. Earlier on Monday, European Central Bank President Lagarde said that due to the impact of possible new tariffs imposed by the United States on European exporters, it is necessary for the European Central Bank to cut interest rates again.