Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
According to Pierre Wunsh, a member of the ECB Council, a representative of the ECB Directorate.
“We went in the right direction. And I was really relaxed,” he said on Thursday Karen Ts -Knbk on the sidelines of the IIF European summit in Brussels.
“If we forget the tariffs …. We went in the right direction. Then the question was a more question of the subtle settings of the cuts and where we land,” Wunsh said. “I liked, you know, inflation can be a sad part (20) 25 and (20) 25, it’s not a sad year. But if you add tariffs to the equation, it is getting more complicated,” he said.
Wongsh, who is also the governor of the National Bank of Belgium, said the tariffs would be “bad for growth” and “probably” inflation, but note that the exact impact remains uncertain and will depend on any potential revenge and how to respond to duties.
His comments come every other day after Trump announced 25% of the tariffs on all cars that were not made in the US, “acting on April 2.
These are just the latest events in Trump’s trade policy, which noted many tariffs announced – and sometimes postponed, changes or cancellations, since negotiations and measures that have also entered the game.
On April 2, a key date for entering a wide range of duties should be, although the recent comments of Trump and its administration have reported that adjustments may be made and duties may be softer than originally indicated.
Ahead of the interest rate
The ECB will make its next interest rate on April 17 shortly after the tariffs are planned to come into force. According to LSEG, the markets last time prices for approximately 79% of the chances of a 25-base interest rate.
By then, Wunsch said the Central Bank may have an approximate idea of the tariffs, which could affect the ECB decision. However, he said that “he would not focus on April” because the trade policy would have a medium -term influence.
On Thursday, the Central Banker left the door open for all possible actions with the ECB regarding interest rates – further cuts, hike or pause.
“I think the likelihood is still limited by the fact that we will have to go, but there may be a case for a pause,” he said.
“If the tariffs have an inflation and negative impact on growth, it will be a difficult equation, and we may have to pause. I don’t ask for it, but I think it should be part of the discussion,” he said.
Fiscal against tariff policy
On Thursday, Wunsch policy also indicated that recent changes around financial policy in Europe could mitigate the impact of tariffs.
Germany Earlier this month, it adjusted its constitution in what was described as a financial reversal, making changes to its long -standing debt policy to provide higher protection costs and create a special 500 billion euro infrastructure fund (539 billion).
Meanwhile, the European Commission also has Made moves Towards a major protection costs, obliging to mobilize as much as € 800 billion to increase safety costs.
According to Wunsch, it was still unclear what would come from the plans as a whole to the EU, “what will happen in Germany.”
The country’s measures “can to some extent, to a certain extent, and possibly to compensate to the US,” he said.
If the impact of tariffs and financial expansion is balanced, the rest of the tariffs can be around to translate the inflation above, said Wents, saying it was the reason not only in April but also to take a longer term for the next one or two years.
“The risk can arise up on the inflation front,” he said.
