Société Générale: Tariff clouds loom, the European Central Bank may significantly cut interest rates by 50 basis points next week

Société Générale released a research report stating that the European Central Bank may lower the deposit rate by 25 basis points to 2.25% at the meeting on April 17, and does not rule out the possibility of a 50 basis point cut. The report pointed out that the U.S. tariff policy may affect market sentiment and economic activity, increasing the downside risk to economic growth. It is expected that the European Central Bank will cut rates again in June and July, but may raise rates in the medium term. President Lagarde emphasized the importance of the policy response mechanism, indicating that normalization of policy will continue