Bank of Canada: Market expectations for a rate cut by the European Central Bank may be too aggressive

On December 12th, Jinshi Data reported that strategists at the Royal Bank of Canada Capital Markets said in a report that the currency market's expectations for future interest rate cuts by the European Central Bank are too aggressive. It is expected that the European Central Bank will not cut interest rates by more than 25 basis points at any future meeting, and the final interest rate will be higher than the current market pricing. Data shows that the current pricing of interest rates for term deposits in the currency market is around 1.75%. However, the Royal Bank of Canada predicts that once the interest rate for term deposits by the European Central Bank reaches 2.25%, the interest rate cuts will end. The interest rate for term deposits is expected to reach 2.25% in April next year. As for tonight's meeting, strategists at the Royal Bank of Canada expect the European Central Bank to cut interest rates by 25 basis points.
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