(Bloomberg) -- Deutsche Bank and Morgan Stanley both trimmed their forecasts for European Central Bank borrowing costs, predicting now only three moves this year.

“We are updating our ECB baseline to a more gradual – and uncertain – easing cycle,” Deutsche economists led by Mark Wall said in a note. They previously anticipated five quarter-point cuts in 2024. “We retain the same baseline terminal rate, but three quarters later than in our previous view.”

Morgan Stanley economists altered their forecast to reflect US colleagues’ predictions for fewer moves by the US Federal Reserve. They previously expected four reductions for the euro zone this year.

“While a certain level of decoupling between the Fed and ECB can occur, we think that it will be limited,” Chief Europe Economist Jens Eisenschmidt and colleagues wrote. “We think we will see a relatively similar profile between the Fed and the ECB, in particular during the first part of their respective cutting cycles.”

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