Barclays currently believes that the European Central Bank may choose to cut interest rates once in December, rather than the previously predicted rate cut in September. The bank's economist Mariano Sinha said that this revision takes into account the weakness in economic activity in the second half of the year, caused by the continued drag of trade policies and the impact of earlier imports by the United States. Barclays expects that by December, signals regarding trade headwinds will be clearer, and concerns about supply chain disruptions affecting inflation will decrease. In addition, confidence that the 2026 fiscal plan will not reignite inflationary pressures may increase, supporting a 25 basis point rate cut. Barclays expects that by 2026, the European Central Bank's terminal deposit rate will remain at 1.75%.