Economists: Tariff uncertainty remains, European Central Bank may further cut interest rates.

Economist David Rea stated that asserting the end of the European Central Bank's loose monetary policy cycle now requires great courage, considering the uncertainty related to tariffs still exists. The rate cut in June has largely been absorbed by the market, but without the US trade policy, this decision would not be so clear. The inflation rate in the eurozone is very low, but price pressures have not completely disappeared from the system, as seen from the significant increase in core inflation in April. Rea stated that under normal circumstances, this is likely to lead to a pause in the European Central Bank's monetary easing policy. Further rate cuts later this year would send a clear signal that policymakers believe the economy will need more stimulus measures to sustain it.