JPMorgan Chase: The European Central Bank is expected to cut interest rates for the first time in September and end PEPP reinvestment by the end of next year

JPMorgan Chase: It is expected that the European Central Bank will keep the benchmark interest rate unchanged and will soon start cutting interest rates, the first rate cut is expected to be in September next year, and by the middle of 2025, the deposit rate will fall back to 2.0%. In addition, they believe that an early rate cut is unlikely unless economic growth weakens completely, or cracks begin to appear in the labor market. While it is likely that the ECB will discuss an early end to the reinvestment of the PEPP at its December meeting, it is more likely that a decision will be made in the new year. JPMorgan Chase & Co. expects to end the reinvestment by the end of 2024, but does not rule out reducing some of its investment in 2024.

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