Morgan Stanley: The European Central Bank's threshold for interest rate cuts is quite high.

Jin10 data reported on July 24th that Morgan Stanley analysts stated in a report that the European Central Bank maintained interest rates on Thursday, and the threshold for the next rate cut may be quite high. Analysts pointed out that most members of the European Central Bank currently believe that interest rates are at a "neutral" level. "In our view, this means that unless there is a significant shock or data significantly exceeds expectations, the European Central Bank will only adjust interest rates at the quarterly forecast meetings." They stated that Thursday's decision confirmed this judgment. "As before, whether to cut interest rates in the future will still depend on the potential inflation trend, the strength of monetary policy transmission effects, and inflation forecasts." Morgan Stanley expects the European Central Bank to cut rates once each in September and December this year.