Mitsubishi UFJ: The European Central Bank may cut interest rates at a slower pace than expected

Jinshi Data November 18th News, Mitsubishi UFJ Bank said that the European Central Bank’s rate cut speed may be slower than market expectations, and the market’s rate cut expectations are somewhat “too high”. The institution stated that the European Central Bank’s reaction to the economic slowdown is sluggish and pointed out that when the European Central Bank raises interest rates in 2022 to 2023, it did not give too much attention to the weak economic rise. Mitsubishi UFJ Bank believes that if inflation rises, the same situation may occur in 2025 (citing Trump’s trade policy and the EU’s retaliation). In addition, Mitsubishi UFJ Bank stated that the euro’s decline since the US election has been a bit excessive, and improvement prospects are expected in the future.