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ECB Urges Caution on Rate Cuts Amid U.S. Tariff Uncertainty
ECB Urges Caution on Rate Cuts Amid U.S. Tariff Uncertainty
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BTCCSquare news:
The European Central Bank is adopting a wait-and-see approach to further monetary easing, with Governing Council members emphasizing the unpredictable economic impact of new U.S. trade tariffs. Edward Scicluna warned against premature rate adjustments, noting tariffs could simultaneously drive inflation through import costs while suppressing demand via slowed global trade.
Scicluna dismissed expectations of major policy shifts at October's Florence meeting, signaling rates will likely hold steady. "The jury is still out on whether tariffs will prove inflationary or disinflationary," he stated, underscoring the ECB's deliberate stance amid global economic crosscurrents.
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