ECB Seen Cutting Rate Twice in Policy Beholden to Trump’s Whims

European Central Bank officials are likely to cut borrowing costs twice more, though they will ultimately take their cue from US President Donald Trump, according to a Bloomberg survey of economists.

Respondents expect consecutive quarter-point reductions in April and June, before the deposit rate then stays at 2% at least through the end of 2026. They caution that US policy poses significant risks, threatening to undermine euro-area economic growth.

They cite the US president’s erratic efforts to rearrange the global order as chiefly to blame. His trade war has roiled financial markets, fueled fears of a major economic ...