Morningstar Group: It is expected that the Central Bank of Europe will cut interest rates twice by the middle of this year.

On March 6th, Jinshi data, Michael Field, Chief Stock Strategist at Morningstar, stated that the decision of the European Central Bank to cut interest rates by 25 basis points will be welcomed by European stock markets. Currently, the trading prices of European stock markets are still slightly below their fair value. It is expected that by the middle of this year, the European Central Bank will cut interest rates twice more. The European Central Bank clearly believes that inflation in Europe is under control. Although wage levels are still catching up, the recent surge in service sector inflation may be temporary. By the end of 2025, the interest rate may drop to 2%. A structurally lower interest rate level will benefit European stock markets, especially those affected by consumer spending.