Royal Bank of Canada BlueBay Asset Management stated that the European Central Bank may lower interest rates below 2% next year, estimating this as the short-term neutral interest rate. The institution's senior portfolio manager, Kaspar Hense, indicated in a report that the core inflation rate is expected to be around 2.5% in the first half of 2025, meaning real interest rates would be negative. He mentioned that under the influence of unfavorable factors such as trade, ongoing competitive pressure from other countries, and fiscal issues, this should provide mild support to the economy.