UniCredit Bank: Central Banks to Overlook Short-Term Turmoil, Expect Fed to Cut Rates Once This Year

Odaily News According to a report by Marco Valli and Daniel Vernazza, Chief Economists at UniCredit Bank's Investment Research Institute, military action against Iran is expected to last for weeks, which will allow central banks to temporarily overlook short-term turmoil, after which tensions and energy supply disruptions should ease. They stated: "In our baseline scenario, the Fed is still expected to cut rates only once this year, while the ECB will keep rates unchanged until 2027." The two chief economists added that the risks facing the ECB this year have shifted from additional monetary easing to the possibility of earlier policy tightening. (Jin10)