The recent appreciation of the euro is probably not enough to cause the European Central Bank (ECB) to reconsider its rate-cut plans, according to analysts at Evercore ISI as reported by Jin10. The analysis suggests that the current strength of the European currency against the dollar does not exert enough pressure on the ECB to change its monetary policy.
Experts indicate that very specific scenarios would be necessary to reverse the trajectory. A substantial decline in inflation expectations, driven by a significant weakening of demand, would be the first key factor. Additionally, the euro w
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