Market Analysis: The European Central Bank may conduct its last rate cut after inflation declines.

Jin10 data reported on June 2nd that Felix Schmidt of Berenberg said that the European Central Bank is prepared to make its final rate cut this week following the decline in inflation in the Eurozone in May, which will lower the deposit rate to 2%. Subsequently, the European Central Bank may maintain the interest rate at this level. However, this will largely depend on the trade negotiations between the EU and the US. Berenberg predicts that the most likely outcome will be a framework agreement, which will reduce uncertainty and allow the Eurozone economy to regain momentum later this year, especially considering the increase in fiscal spending. Schmidt stated that due to the lagging nature of monetary policy, further interest rate cuts by the European Central Bank could stimulate the real economy when additional demand support is no longer needed.