By Stefano Rebaudo and Linda Pasquini

(Reuters) -Investors are increasingly pricing in a “higher for longer” interest rate environment in the euro zone, with a potential cut in March seen as a temporary blip before borrowing rates climb back above 2%.

A number of market-based measures of rate expectations indicate that investors are growing less concerned about the deflationary impact of tariffs following the recent trade deal between the United States and the European Union.

They’re also confident that a sharp increase in fiscal spending in Germany will boost the economy, thereby reducing the need for more rate cuts in the longer term.

Several investment banks, including Goldman Sachs, have revised their forecasts, now anticipating that the European Central Bank has ended its current

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