South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Gold Prices Steady as Hormuz Tensions Fuel Fed Rate Concerns 
Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
Gold Prices Hold Near Seven-Week High as Markets Await U.S. Inflation Data 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Oil Prices Set for Steep Weekly Losses as Hormuz Deal Stalls 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Asian Stocks Cautious Ahead of US Jobs Data as Oil Rises 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
The European Central Bank (ECB) is expected to lower interest rates three more times in 2025, bringing the key deposit rate to 1.5%, according to analysts at Deutsche Bank. The forecast includes 25 basis point cuts in June, September, and December as part of an ongoing easing cycle. However, Deutsche Bank cautions that “two-sided risks” could shift this path.
One scenario involves delayed U.S. tariffs triggering a eurozone "growth shock," which may push rates below the 1.5% threshold. Alternatively, stronger-than-expected economic resilience could halt the rate cuts earlier than projected.
In April, President Donald Trump’s announcement of sweeping U.S. tariffs, including 10% levies on European steel, aluminum, and autos, rattled global markets. Although some tariffs have been postponed, continued trade tensions remain a significant threat to eurozone growth. ECB policymakers note that heightened uncertainty and volatile financial markets may tighten financing conditions, further pressuring the economic outlook.
In response to weak economic momentum, the ECB recently cut its deposit rate by 25 basis points to 2.25%—its seventh cut in a year. The main refinancing rate dropped to 2.40%, and the marginal lending facility fell to 2.65%.
Policymakers cite falling inflation as another reason for the dovish stance. Headline and core inflation both declined in March, and services sector price gains have cooled, suggesting inflation may settle near the ECB’s 2% medium-term target.
Despite signs of resilience, the eurozone economy remains vulnerable to global shocks. ECB officials warn that if U.S. tariffs are fully implemented, euro area GDP growth could be reduced by up to 0.5 percentage points this year.
