European Central Bank (ECB) policymaker Yannis Stournaras stated on Thursday that newly imposed U.S. tariffs would not obstruct a potential interest rate cut in April.
Stournaras acknowledged that the tariffs are expected to impact economic growth, estimating a negative effect on the euro area’s GDP growth rate of approximately 0.3% to 0.4% within the first year. However, he emphasized that the inflation trajectory remains unchanged.
Market Reaction
Following his remarks, the EUR/USD currency pair was trading at 1.0952, marking a 0.85% increase on the day.
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