The fears about tariffs are the center of the March March meeting, showing minutes
Officers European Central Bank There are already calculations for potential expenditure The tariffs Of USA Before they were adopted, they argued that they would lose weight on growth, but had an uncertain impact on inflation, showing it on March 5 and 6 in March 5 and 6 in ECB on Thursday (3).
At that meeting, the ECB had cut interest rates for the sixth time from June last year and opened new loose doors, but there was no commitment to April, depending on the uncertainty of Donald Trump’s tariff plans, and still a month away.
“It has been said that it is said that potential shocks in the horizon, including the more common climbing of trade tensions and uncertainty, are significantly weighted on growth,” the document said on Thursday.
“These factors have argued that the medium -term inflation goal will increase the risk of not reaching the target.”
The combination of these factors also seek decisive action from the ECB, some argue in March.
“From this point of view, in the face of uncertainty, it is not gradually arguing to adjust the interest rate,” the ECB said.
However, officials have warned that commercial obstacles can also cause a short -term increase in prices, especially if Europe responds with their own actions.
ECIB added that “the combination of tariffs and US revenge actions can also cause discharge dangers for inflation, especially in the short term.”
In the weeks after the meeting, investors have increased their bet on another interest rate on April 17 and now there are two more cuts at the end of the year as inflation pressure is unleashed.
Officials said the rates announced by US President Donald Trump would probably weight about growth and their financial loss would be weighted on prices.
In recent weeks, the euro has also increased, the revenue of securities has increased and fuel prices are rapidly falling, which indicates the direction of reducing prices.
But the perspective is not clear. Europe must retaliate the tariffs, which will definitely increase prices.
The broken world also increases costs for companies and increases inflation, but increasing the cost of protection also increases the overall demand and hence increases prices.
“The ECB added,” high levels of uncertainty (…) are essentially necessary in defining policies and defining communication, especially. “
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