Core Viewpoint - The European Central Bank (ECB) is expected to maintain the Eurozone borrowing rate at 2% until the end of 2027, with a possibility of further actions in the future [1][5]. Group 1: Monetary Policy Outlook - A survey indicates that one-third of economists expect at least one more rate cut from the ECB, while 17% foresee potential rate hikes by the end of next year [1]. - The upcoming December monetary policy meeting is considered a critical juncture, as it will incorporate economic forecasts for 2028 [1]. - ECB officials, led by President Lagarde, express satisfaction with current inflation rates and economic resilience, deeming the monetary policy to be in an "ideal state" [2][10]. Group 2: Economic Challenges - Europe faces challenges from renewed US-China trade tensions, particularly in the semiconductor and rare earth sectors, complicating the economic landscape [2]. - France's fiscal difficulties are exacerbated by credit rating downgrades, while doubts arise regarding the effectiveness of Germany's large-scale infrastructure and defense investments [2]. - The potential delay of the new carbon emissions trading system may exert inflationary pressure in the coming years, alongside concerns about high asset valuations increasing the risk of market collapse [2]. Group 3: Inflation and Growth Risks - Current inflation in the Eurozone has risen to 2.2%, the fastest pace in five months, leading to concerns about upward price pressures [8]. - Economists predict that if inflation rates drop significantly below the 2% target, it could trigger further rate cuts [7][13]. - The balance of short-term risks to economic growth and inflation is perceived as roughly even, but long-term uncertainties remain high [8]. Group 4: Structural and Political Factors - Over 60% of respondents believe that the Eurozone's economic growth limitations stem from both cyclical and structural factors, with many attributing weakness primarily to structural issues [10]. - Supply chain disruptions, particularly in the automotive sector, pose significant challenges, exacerbated by geopolitical tensions and export restrictions from China [10]. - Political instability in France and declining public support for Germany's leadership further complicate the economic outlook [10].