Goldman Sachs: Trump tariffs support European Central Bank to cut interest rates three times before summer

According to BlockBeats, on April 4th, economists from Goldman Sachs stated that the latest US tariffs have increased the possibility of the European Central Bank cutting interest rates this year, including in April. They stated in a report that the strengthening of the euro and the imposition of more aggressive tariffs on East Asia and other parts of Europe mean that inflation in the eurozone is facing downside risks, which increases the possibility of the European Central Bank cutting interest rates three more times. The ECB deposit rate is expected to drop to 1.75% by July. Since the announcement of tariffs, financial conditions have also tightened. In addition, the US government's tough language on foreign retaliation implies a greater risk of escalating trade tensions, which could push the eurozone into a technical recession. After assuming trade-related shocks, Goldman Sachs' current forecast for the Eurozone's growth rate in 2025 is 0.8%. (Golden Ten)