📝Focused On A Potential ECB Skip In April: Deutsche Bank

Expect the ECB to lower its key benchmark rate 25bps to 2.50% on Thursday, making it a total 150bps of cuts since the easing cycle began.

Financial markets will focus on: (1) the updated staff macroeconomic projections and whether/to what extent the United States trade war and defense spending are captured, (2) whether the Governing Council thinks monetary policy is still 'restrictive', and (3) whether the door opens to a short pause ('skip') in April.

Expect Thursday's ECB staff eurozone GDP growth forecasts trimmed to 0.9% this year, 1.2% in 2026 and 1.3% in 2027 from December's estimate of 1.1%, 1.4% and 1.3%, respectively. - Deutsche Bank