- ECB shouldn’t rule out larger interest rate cut.
- There are a few good reasons to pause rate cuts.
- Economic risks are starting to materialise.
- We must retain full freedom of action, be agile.
There’s a risk of the ECB easing too much amid tariff uncertainty. If the US reverses its policies or at least gets to better than expected deals, the central bank could be fighting against inflation again on surging demand as uncertainty dissipates.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
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