
Inflation cooling vs tariff clouds! The European Central Bank is in a dilemma, will it pause interest rate cuts in April?

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The European Central Bank faces the decision of whether to implement its seventh interest rate cut since June of last year, as inflation has fallen to 2.2%, close to the target. Although market expectations for a rate cut have decreased, investors believe there is a 70% chance of a cut in April. Officials have differing views on the impact of Trump's tariff measures on prices in the eurozone, while also needing to assess the effects of European military spending and infrastructure investment in Germany. Bloomberg Economics believes that the European Central Bank may pause interest rate hikes in April for evaluation

