Rate for German Financial Boost Euro Zone will not be more than drag: IMF

According to Alfred Kamar, director of the International Monetary Fund European Division, the cost of high German infrastructure will increase Europe’s economic growth in the coming years – but not more than expected drag from US rates.

IMF reduced its growth attitude for the euro area last week, and dismissed To us, UK And Many Asian countries Due to the unstable rate policy of President Donald Trump.

The organization has reduced the growth estimates of the Euro area for everyone in the next two years by 0.8% in 2025 and 0.2% in 2026 to 1.2%.

“This is the rate and trade tension, which is rather than the positive consequences in financial financial financial consequences,” Cameer told Carolin Roth of CNBC in an interview at the IMF-World Bank spring Spring you last week.

“What we see is that we have a meaningful condemnation for Europe’s advanced economy … and for the emerging euro area, double this two years.”

The negative effect of the rates will be slightly off Germany’s recent infrastructure cost billsWhich will increase the euro area in those two years, Kammer said.

The suit went to Germany Prolonged loan rules The high protection costs are unlocked and enables 500 billion euros ($ 548 billion) infrastructure and weather funds. This is the move Described by economists The largest in the euro zone – as a “game changer” for a lazy economy.

However, the American rates have shaken optimism, which is widely expected Most of the global growth and trade flow??

Many policymakers in European Central Bank Told CNBC last week The path of inflation appeared positively – with prices, inflation came down more in the block – their widespread attitude is now more uncertain.

The IMF company has said that the ECB should only reduce interest rates this year even after the growth risk.

The ECB has reduced the rate of seven times in the quarter-thigh-point growth, which has been started in June 224 so far. In April, a recent movement was taken to deposit facilities, its main main to 5.25%.

“We have a clear recommendation for the ECB. Whatever we have seen so far, we have worked in sterile efforts and economic strategies … so we expect 2% inflation in the late 2025,” Cameer told CNBC.

He said, “Our recommendation is that there is another 25-base-point cut in the summer, and then the ECB should keep a 2% policy rate until there is no major shock and no need to restructure the financial policy,” he added.

On Monday night, the index swap prices pointed out the expectations of the market for two more quarter-point cuts this year.