Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
The European Central Bank (ECB) is expected to lower interest rates three more times in 2025, bringing the key deposit rate to 1.5%, according to analysts at Deutsche Bank. The forecast includes 25 basis point cuts in June, September, and December as part of an ongoing easing cycle. However, Deutsche Bank cautions that “two-sided risks” could shift this path.
One scenario involves delayed U.S. tariffs triggering a eurozone "growth shock," which may push rates below the 1.5% threshold. Alternatively, stronger-than-expected economic resilience could halt the rate cuts earlier than projected.
In April, President Donald Trump’s announcement of sweeping U.S. tariffs, including 10% levies on European steel, aluminum, and autos, rattled global markets. Although some tariffs have been postponed, continued trade tensions remain a significant threat to eurozone growth. ECB policymakers note that heightened uncertainty and volatile financial markets may tighten financing conditions, further pressuring the economic outlook.
In response to weak economic momentum, the ECB recently cut its deposit rate by 25 basis points to 2.25%—its seventh cut in a year. The main refinancing rate dropped to 2.40%, and the marginal lending facility fell to 2.65%.
Policymakers cite falling inflation as another reason for the dovish stance. Headline and core inflation both declined in March, and services sector price gains have cooled, suggesting inflation may settle near the ECB’s 2% medium-term target.
Despite signs of resilience, the eurozone economy remains vulnerable to global shocks. ECB officials warn that if U.S. tariffs are fully implemented, euro area GDP growth could be reduced by up to 0.5 percentage points this year.
