· 3d · on MSN
European Central Bank cuts rates again as threat of trade war with Trump weighs on economy
Trump, Tariffs and Potential European Defense Surge Loom Over European Central Bank Meeting
The impact of a potential trade war with the United States and massive increases in European defense spending and government borrowing are looming over Thursday’s policy meeting at the European Centra
· 3d
European Central Bank cuts rates by another quarter point as possible trade war looms
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Geopolitics reaches the ECB: Lagarde warns that the trade war generates "uncertainty" while defense spending "contributes to growth"The European Central Bank decrees its fifth consecutive interest rate cut, sets the price of money at 2.5%, and anticipates that the next monetary decisions are not at all clear. Huge uncertainty". "Uncertainty everywhere".
FX traders are facing a monumental recalibration as the ECB prepares for its next move. Germany’s seismic fiscal shift has fueled the euro’s rally, but the real test will come in April when the ECB must decide whether to continue cutting rates or adjust to Europe’s new spending reality.
The European Central Bank cut interest rates for the sixth time in nine months on Thursday, sticking to its easing plan in the face of economic upheaval from an unfolding trade war and new plans to boost Europe's military spending.
4don MSN
The ECB has cut rates five times since June as inflation retreated and economic growth faltered. But with rates slowly approaching a level that no longer restricts economic growth, one might expect an end to the easing cycle.
The EUR/USD pair reached levels not seen since last November, settling not far below 1.0888, the Friday high. The US Dollar’s (USD) sell-off was the result of tepid United States (US) data and mounting fears President Donald Trump’s tariffs will result in an economic setback.
A trade war with the United States is looming and growth ... but we would expect growing disagreement among Governing Council members." The ECB will struggle to keep up with the rapid change ...
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