Something like normality after the turbulent start of April, even if the concerns about the effects of the tightened trading conflicts are still being smoldered and the course increases on the stock exchanges are allowed to limit until further notice. This is the focus of the investors this week on the upcoming interest rate decision of the European Central Bank (ECB). Another key interest rate reduction is expected by 0.25 percentage points to 2.25 percent PA based on the deposit interest rate. The already weak growth dynamics in the Euro zone receives a damper through increased trade policy uncertainties. The foreseeable growth, sunken crude oil and raw material prices as well as the firmer euros compared to the US dollar could recently push inflation in April from 2.2 percent towards the ECB target level. The accompanying text of ECB President Lagarde is likely to be particularly careful. Because the key interest rate approaches the neutral, i.e. neither stimulating nor braking level, which is estimated between 1.5 and 2 percent, which could bring a key interest rate break closer. However, the emphasis is likely to be further on existing uncertainties and a continued data -dependent further orientation of the Monetary policy to be avoided. However, the US Federal Reserve Fed is likely to get even more stronger political pressure. US President Trump regularly points out that he has the better feeling for interest control and would prefer deeper key interest rates. However, it remains to be seen whether there is sufficient signs of economic cooling and falling inflation pressure in the United States. In the short term, the price -stringing effects of the newly raised tariffs predominate, so that the FED has no reason for one at its next interest decision at the end of April Interest rate should have.
