1309 GMT - The European Central Bank looks set to keep cutting interest rates over the coming months, despite a 90-day reprieve in the tariff war between the U.S. and the EU, Capital Economics' Andrew Kenningham writes in a note. The trade spat's fallout "should be less severe than seemed likely only yesterday," Kenningham says, after Trump announced a pause in reciprocal tariffs, a move mirrored Thursday by the authorities in Brussels. But the swinging policy will still have a major impact, and will contribute to lower inflation in the eurozone, he says. That makes the ECB almost certain to cut its key rate to 2.25% next week, and to continue bringing rates lower at its meetings in June and July, Kenningham says. (joshua.kirby@wsj.com; @joshualeokirby)))

(END) Dow Jones Newswires

April 10, 2025 09:09 ET (13:09 GMT)

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