On Thursday, the European Central Bank (ECB) left room for further policy easing due to concerns about weak economic growth overshadowing worries about persistent inflation. This marks the fifth rate cut by the ECB since June, with expectations of two or three more cuts this year. Market reactions showed Germany's 10-year bond yield dropping and the euro slightly lower against the dollar while the pan-European STOXX 600 index reached near its record high.
Comments from experts emphasized the ECB's data-dependent approach to setting monetary policy and the likelihood of future rate cuts to address growth concerns and restrictive interest rates. The ECB's press statement emphasized continuity in policy, raising expectations for additional cuts and highlighting the challenges faced by the eurozone economy. The consensus among analysts suggests a cautious but persistent path towards further rate cuts by the ECB in the foreseeable future.