MARKET OUTLOOK - A 50 Basis Point Rate Cut from the ECB Would Be a Surprise

Union Investment's Michael Herzum stated that the European Central Bank is expected to cut interest rates by 25 basis points this week, and a larger move would surprise the market. The chief economist emphasized that surprising the market "doesn't align with the ECB's own image." Herzum noted that the ECB will keep all monetary policy options open beyond the December meeting. Commenting on the uncertainty caused by Donald Trump and his policies overshadowing Europe's growth expectations, Herzum added, "Current base interest rates are still in a range that reduces growth. Therefore, a 50 basis point increase cannot be ruled out."