BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
BOJ Seen Moving Toward December Rate Hike as Yen Slides 
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.
