The pace of the moves depends on the dataWe are data dependent but not data point dependentGrowth outlook has deteriorated due to manufacturing sectorIf disinflation stays on track, it would make a case for further rate cutsWe could be leaving restrictive territory in the spring of 2025The last thing we need now is yet another trade warTariffs impact will be medium-to-long termProtectionism by definition is inflationary
The remarks are as you would expect from the ECB at this current stage. But they are already starting to recognise the potential impact of Trump tariffs and that’s a warning signal to the outlook for next year I guess.
This article was written by Justin Low at www.forexlive.com.
