ECB Expected to Cut Interest Rates to 2.65% Amid Market Volatility
The European Central Bank (ECB) is set to reduce interest rates to 2.65% on Thursday, down from a peak of 4.5%, in response to bond market volatility.
This easing comes as markets anticipate three rate cuts from the Federal Reserve by 2025, while Germany and China implement fiscal measures to support their economies.
The ECB's actions may contribute to global liquidity easing, potentially benefiting risk assets such as cryptocurrencies.
- ECB expected to cut rates amid bond market volatility
- Inflation in the EU remains above the target of 2%
- Germany’s 10-year bund yield reaches 2.8%, highest since 2011
- U.S.-German yield spread narrows, affecting dollar index
- U.K. bond yields surpass those of the U.S.
- Japan's 10-year bond yield hits 17-year high at over 1.5%
- Volatile bond markets may lead to financial tightening