- The ECB will soon reach terminal rate if baseline holds.
- Interest rate cuts are nearing an end assuming inflation stabilises at 2% over the coming months.
- It's important to analise alternative scenarios amid the trade uncertainty.
- If either inflationary or deflationary risk scenario materialises, monetary policy will react accordingly.
The market sees the terminal rate for the ECB around 1.75%, which is equivalent to two more 25 bps cuts.
ECB's Kazaks
