Mitsubishi UFJ: ECB rate cut may be slower than expected

On November 18, Mitsubishi UFJ said that the European Central Bank rate cuts may be slower than the market expects, the market's expectations of rate cuts are a little “too high”. The agency said the European Central Bank slow response to the slowdown in economic growth, and pointed out that when the European Central Bank in 2022 to 2023, when the rate hike, it did not give too much attention to weak economic growth. Mitsubishi UFJ believes the same could happen in 2025 if inflation rises (citing Trump's trade policies and the EU's retaliation in response). In addition, Mitsubishi UFJ says the euro's decline since the U.S. election has been a bit overdone and expects prospects for improvement going forward.