Guns, Butter and Interest Rates

### **Macro & Market Insights – March 2025**  

AXA Investment Managers published the featured report which provides a comprehensive outlook on key macroeconomic trends, central bank policies, and geopolitical factors impacting global markets.  

• ECB Rate Cuts: The European Central Bank is expected to cut rates by 25 bps this week, with further easing likely despite hawkish resistance.  
• Geopolitical Risks & Defense Spending: Rising US-EU trade tensions and the potential for a US military withdrawal from Europe could drive increased European defense budgets, straining fiscal policy.  
• US Economic Slowdown: Consumer confidence is deteriorating, inflation concerns persist, and fiscal debates in Washington signal potential economic headwinds.  

Read the full report for detailed analysis on monetary policy, market risks, and investment implications.