Institutions: Tariff Uncertainty May Prompt the ECB to Cut Rates More Than Once

According to Odaily Planet Daily, Algebris Investments analyst Gabriele Foa stated in a report that due to uncertainties surrounding tariffs, the European Central Bank's rate cuts may be deeper than the market currently anticipates. The portfolio manager noted, "Trade tensions and developments regarding tariffs could result in the end of the easing cycle being slightly lower than current market expectations." Data from LSEG shows that money markets currently expect the ECB to cut rates by another 25 basis points in December. Foa added that the spillover effects of tariffs on Europe may take longer to materialize. (Jin10)