ExodusPoint’s Dan Bulega says the ECB will cut rates twice in 2025, betting on a sharp policy shift as eurozone inflation drops to 2.5% and growth stalls at 0.3%. The ECB’s 3.75% rate looks unsustainable, he warns, urging investors toward EU sovereign bonds like German Bunds and Italian debt. Growth in the eurozone remains fragile. Bulega also stays bullish on EU debt. He sees stronger demand for European bonds. Lower rates could boost confidence in sovereign and supranational debt. Markets may welcome easing after months of tight policy.
