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european central bank set for rate cuts through 2025
The European Central Bank is expected to cut rates by 25 basis points to 2.75% during its upcoming meeting on January 30, with a forecast of further reductions at each of the four Governing Council meetings in the first half of 2025. The policy rate is projected to reach 2% by mid-year, followed by additional cuts in the second half, ultimately hitting a terminal rate of 1.5% by year-end.
Deutsche Bank warns of potential Canadian dollar decline amid trade war risks
Deutsche Bank warns of a significant risk that the Canadian dollar could test its all-time low due to escalating trade war tensions, predicting a potential recession in Canada if tariffs are imposed. They anticipate the Bank of Canada may cut rates to 1.50%, with USD/CAD possibly rising to at least 1.53, and a chance of reaching the 2002 high of 1.61. The bank emphasizes that Canada's response to U.S. tariffs could set a precedent for global trade relations under the Trump administration.
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