ECB Rate Cut Expected Amid Economic Concerns

According to BlockBeats, on January 30, Kathleen Brooks, an analyst at the UK securities investment firm XTB, stated that the European Central Bank (ECB) is expected to cut interest rates by 25 basis points this week. This anticipated move is unlikely to significantly impact the market, as attention will be focused on ECB President Christine Lagarde's press conference. The market currently predicts an 88% probability of another rate cut in March, with further reductions likely by June, totaling 3.5 cuts in 2025. Brooks noted that Lagarde's ability to adopt a dovish stance at this meeting is limited. The primary threat to the Eurozone economy is the tariffs imposed by U.S. President Donald Trump. It may be prudent for the ECB to wait for the tariffs to take effect before signaling an accelerated pace of rate cuts. If the ECB preemptively announces an acceleration in rate cuts at today's meeting, it may lack tools to respond when the tariffs are implemented. The ECB is expected to follow the Bank of Canada's lead by cutting rates by 25 basis points and removing forward guidance. If this occurs, the euro may experience a slight rebound.