ECB cuts interest rates, keeps the options open

This European Central Bank As expected on Thursday, he cut interest rates, and this was all the options on the table for the next meetings for the summer break during a long time for their next meetings.

ECB has already lowered debt costs eight times or by 2 percent, compared to this year, the United States has wanted to prepare an euro zone economy that wants to prepare an euro zone economic for the economic and trade policy.

With Inflation is safe in the line 2% The target and cut well-flagged, focus on the spotlight, especially since 2%, the rates are neither slow growth nor slow down.

The US economic growth forecast was dramatically cut due to higher tariffs

The Central Bank for 20 countries sharing the Euro, in a statement, offered several instructions, but the meeting of these decisions will be based on the meeting and the information coming.

“The Management Council does not take place in advance for a certain degree,” he said. “Interest rates decisions will be based on the evaluation of the inflation worldview with the strength of inflation, dynamics and monetary policy transmission of internal inflation.”

ESB President Christine Lagarde’s 1245 GMT news conference, more tips about the upcoming months, since 2008/2009, since the global financial crisis, the bank’s most aggressive lighting period can further increase tips.

Investors priced in advance in July and some conservative politicians have poured a chance to give the ECB to re-evaluate how well the welfare will change in the house and abroad.

ECB Board Member and Head Sahin esabel Schnabel Open calls for a break, others are more careful and lagarde adhesive in language adhesive in the language that opens the ECB’s choices.

Trump Admin is looking for the best offers before the expiration of the country’s tariff

For a break, the case applies to a building where the short and medium term prospects for the currency block may require a very different policy response.

Inflation can sink for a short time – perhaps below ECB’s target – However, the growing government can add expenditures and higher trading barriers to the price pressures later.

Added complication, cash policy affects the economy with 12 to 18 months of retardation, so the support support can help a block no longer needed.

Investors still have reduced at least one ratio of this year, but then another defect and then another action, especially the US president Donald Trumps The trade war is intensified.

Disagreement

Confession of close-term weakness, ECB cut the inflation project for next year.

Trump tariffs have already been harmful and will have a sustainable effect, although a friendly resolution was found in trust and invested hit.

“The further increase in trade voltage in the coming months is under the basic forecasts of growth and inflation,” he said. “On the contrary, trade voltage would be higher than inflation than in inflation to growth, growth and less extent.”

This slow growth, along with low Energy costs And a strong euro will curb price pressures.

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Indeed, the majority of economists think that inflation can fall under the target of the ECB, the increase in price increases, if the forecasts return to the target in 2027, and the pandemic thinks of 2% of the decade.

More barrage and outlook change significantly.

The European Union is likely to increase the value of international trade and take revenge against any US permanent tariffs. Firms can transfer some activities to prevent trade barriers, but changes in corporate value chains are likely to collect costs.

The higher European defense costs, especially the value of Germany and the green transition, can add to inflation, and the workforce is raised by the workforce and salary pressure.