Core Viewpoint - Economists highlight ongoing uncertainty regarding tariffs, suggesting that the end of the European Central Bank's (ECB) monetary easing cycle cannot be confidently asserted at this time [1] Group 1: Economic Conditions - The June interest rate cut has largely been priced in by the market, but the clarity of this decision would have been different without U.S. trade policies [1] - The Eurozone's inflation rate remains low, yet price pressures have not completely dissipated, as evidenced by a significant rise in core inflation in April [1] Group 2: Future Monetary Policy - Under normal circumstances, the ECB's governing council would likely pause monetary easing policies, but further rate cuts later this year would signal that policymakers believe the economy requires additional stimulus to sustain itself [1]

Core Viewpoint - The Eurozone's inflation rate in April remained at 2.2%, exceeding the expected 2.1%, complicating the European Central Bank's (ECB) monetary policy decisions [1] Group 1: Inflation Data - Eurozone inflation has been above the ECB's target of 2% for six consecutive months [1] - The ECB's recent decision to lower interest rates by 25 basis points to 2.25% was influenced by concerns over economic growth due to escalating trade tensions from Trump's tariff agenda [1] Group 2: Economic Performance - The Eurozone economy grew by 0.4% in the first three months of the year, which was better than expected [1] - However, the announcement of "reciprocal tariffs" by Trump has since weakened the economic outlook for the region [1]