BNY Mellon: Room for Further Easing by the ECB Will Reopen

According to Jinse Finance, driven by the rise in US and Japanese bond yields, eurozone government bond yields have also increased. However, market attention is gradually shifting to the European Central Bank's policy meeting scheduled for this Thursday. Although the market generally expects the ECB to hold rates steady, Geoff Yu, a strategist at BNY Mellon, stated that the room for further policy easing by the ECB will reopen. He pointed out that unexpectedly low inflation rates in Nordic countries, as well as uncertainties surrounding tariffs and trade negotiations, mean that from the ECB's perspective, there could be negative surprises in future economic growth. Nevertheless, BNY Mellon expects that the ECB is unlikely to begin cutting rates before September at the earliest. (Jin10)