Core Viewpoint - The European Central Bank's decision to pause further interest rate cuts is seen as a prudent move, with indications that they are nearing the terminal interest rate level [1] Group 1: Economic Analysis - MHA economic advisor Joe Nellis highlights the uncertainty brought by global trade disputes as a factor influencing the ECB's decision [1] - There is a possibility that the ECB may consider another rate cut in September, depending on economic conditions [1] Group 2: Policy Implications - The current stance of the ECB reflects a cautious approach to monetary policy amid ongoing economic uncertainties [1] - The statement from the ECB suggests a careful balancing act between stimulating the economy and managing inflation risks [1]

Core Viewpoint - Deutsche Bank maintains its expectation for the European Central Bank's terminal interest rate at 1.50%, indicating that the end of the easing cycle may occur sooner than previously anticipated [1] Economic Outlook - Deutsche Bank has raised its GDP growth forecast for the Eurozone in 2025 from 0.5% to 0.8%, citing the resilience of the Eurozone economy despite the impact of US tariffs [1] - The bank expects inflation in 2025 to remain below the ECB's target of 2%, suggesting there is still room for further rate cuts, although the expectation for a terminal rate of 1.50% is weakening [1] Future Projections - Looking ahead, Deutsche Bank predicts that 2026 will be a turning point, with expectations that the ECB will begin raising interest rates again by the end of 2026, increasing the policy rate to 1.75% [1]