ECB warns U.S. tariffs could hurt European growth, complicating inflation forecasts.

ECB Chief Economist Philip Lane stated that higher U.S. tariffs on European goods could slow eurozone growth, which the ECB now forecasts at 1.1% for 2025, down from 1.3%. While tariffs would likely hurt exports, the impact on inflation is uncertain, with possible scenarios of inflation either slowing or accelerating, depending on currency movements. This uncertainty makes it hard to predict the ECB's response.

3 months ago
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