ECB still has several rate cuts to go before hitting 'neutral' level, paper finds
1. ECB may need further cuts before supporting economic growth. Latest estimate deemed less significant.
FAQ
Why Bearish?
Continued rate cuts can signal economic weakness, potentially impacting S&P 500 negatively, as seen in past periods of low growth.
How important is it?
The ECB's perspective on interest rates can affect global investor sentiment, impacting the S&P 500 indirectly but significantly.
Why Long Term?
The effects of sustained low interest rates typically manifest over an extended period, influencing economic recovery and investor confidence in the S&P 500.