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Bank of America predicts that the European Central Bank (ECB) might accelerate its interest rate cuts if the French elections lead to increased market risks. “The main risk from here is whether French developments end up leading to a persistent tightening of financial conditions and a sustained uncertainty shock,” Bank of America economist Ruben Segura-Cayuela wrote in a recent note. Bank of America cautions that larger shocks from the French elections could lead to weaker Euro area growth, faster disinflation, and a more rapid ECB rate-cutting cycle. Bank of America’s euro area outlookWhile t…

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