Rabobank: The European Central Bank cannot be complacent with current policy results and must not stagnate.

Jin10 data reported on July 17, Carsten Brzeski of ING wrote in a report that due to the strengthening of the euro and tariff turmoil impacting economic prospects, the European Central Bank cannot be satisfied with existing policy outcomes and remain stagnant. Brzeski stated that after lowering the eurozone deposit interest rate to 2% last month, the policymakers at the European Central Bank may have hoped for a “wait-and-see period.” However, the recent appreciation of the euro against the dollar could suppress inflation levels; meanwhile, President Trump’s threat to impose tariffs of up to 30% on the EU is also adding resistance to the economy. Brzeski believes that the European Central Bank is likely to maintain its current policies unchanged at next week’s policy meeting, preferring to wait until the aforementioned potential tariff measures are implemented before taking action. President Lagarde’s summer vacation may be shorter and less peaceful than initially anticipated.