Deutsche Bank predicts that the European Central Bank will cut interest rates in April to address economic risks

Gate.io News bot, Deutsche Bank released the latest forecast that the European Central Bank is expected to implement a 25 basis point interest rate cut at the April meeting, adjusting the interest rate to 2.25%. Since March, while the ECB has been open to rate cuts, economic risks have clearly shifted to the need for easing. At present, the negative impact of tariffs, increased uncertainty and tightening financial conditions on the economy is greater than the ECB expects.

Deutsche Bank’s analysis pointed out that as the disinflationary trend strengthens, the expectation that tariffs will push up inflation is weakening. The main downside risks to inflation include a stronger euro, lower oil prices, and an increased likelihood of trade diversion. Deutsche Bank highlighted that inflation risks are clearly skewed to the downside and maintained its forecast that the terminal rate will reach 1.5%, while warning that the market may be underestimating the risk of deflation. In the face of complex and volatile economic shocks, the ECB needs to maintain policy flexibility.