Denmark Central Bank Intervenes to Support Krone Peg Against Euro 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
RBNZ Raises Interest Rates to 2.50%, Signals More Tightening as Inflation Risks Persist 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
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.
