According to Jinshi, Gurpreet Garewal, global fixed income macro strategist at Goldman Sachs Asset Management, said that eurozone interest rates may hit the final interest rate, that is, the lowest interest rate level in the current easing cycle, earlier than the market expects.

Garewal noted that tourism, sporting events such as the 2024 European Championship and Olympics, and concerts boosted activity and inflation in the services sector this summer, but these factors should now cool. Slower wage growth is likely to slow services inflation.

Moreover, growing downside risks to growth could prompt ECB officials to accelerate the pace of rate cuts in 2025, rather than the quarterly pace adopted in 2024.