TechFlow news, April 14 — According to Jinshi Data, a survey by an institution shows that due to higher U.S. tariffs, eurozone inflation will be lower than previously forecast. The findings support the European Central Bank's rationale for cutting interest rates this week. Analysts expect average consumer price increases of 1.9% in 2026 and 2% in 2027, both revised downward by 0.1 percentage points. They also forecast economic growth of 0.8% this year, slightly below earlier expectations, with momentum expected to pick up afterward.
In another survey, economists predict the ECB will cut rates twice more, in April and June. JPMorgan economist Greg Fuzesi said, "Even if the U.S. pauses tariff imposition, an April rate cut still makes sense." He added, "A June cut is also unlikely to generate much debate," though the subsequent path depends on how trade negotiations with the U.S. unfold.
