Investment banks cut expectations for the size of the ECB's interest rate cuts

Golden 10 data, March 9, investors will continue to think about the impact of Germany's large-scale fiscal stimulus plan in the coming week, as well as the impact of Germany's plan to increase defense spending. Germany's massive fiscal stimulus package has led to a sharp rise in German government bond yields. Of particular interest to investors is how fiscal expansion will affect economic growth and inflation in Europe, and how this will affect the ECB's monetary policy. After the ECB cut the deposit rate by 25 basis points to 2.50% this week, Vanguard and Alliance Bernstein are already expecting a smaller rate cut from the ECB. Vanguard now expects only one more rate cut this year, while Alliance Bernstein's revised forecast for the ECB's policy rate by the end of 2025 is 2%, up from its previous forecast of 1.75%.