Analysts at Yuchun Bank stated in a report that the European Central Bank is expected to announce a 25 basis point rate cut tonight, which should have a neutral impact on Euro-denominated Crediting. Analysts mentioned that if the central bank further cuts rates by 50 basis points, it is unlikely to be beneficial for Euro Crediting as this would raise concerns about economic growth in the Eurozone. According to LSEG Refinitiv data, the market expects an 83% chance of the European Central Bank cutting rates by 25 basis points and a 17% chance of a 50 basis point cut. Yuchun Bank noted that as the European Central Bank continues to cut rates, the Euro Crediting spreads may experience slight fluctuations or narrow in the coming months.