Last interest rate cut in sight?

The ECB Governing Council will meet next week. In the persistently uncertain market environment since the US tariff dispute, we expect a further interest rate cut of 25 basis points to 2%. We assume that this will mark the end of the current cycle of interest rate cuts for the time being. However, the risks to the outlook for the interest rate path have increased. In addition, a flash estimate of eurozone inflation for May will be published next week. We expect the inflation rate to fall to around 2.0%. The economic downside risks have also increased the downside risks to the inflation outlook.