ECB's Rehn: Great uncertainty is restraining economic activity ...Middle East

forex live - News
ECBs Rehn: Great uncertainty is restraining economic activity
Great uncertainty is restraining economic activity.In the short-term, the impact of tariffs on Euro Area inflation is to the downside due to lower demand.Most economist assumed the euro would weaken as a result of tariffs. That has not happened. If China redirects its exports toward Europe due to excessively high tariffs by the US, if energy prices fall and if the euro strengthens, then tariffs won’t cause inflation to accelerate in the euro area.The trade war started by President Trump has created exceptional uncertainty, which reduces euro-area economic growth.

The experience from the trade war 1.0 in 2018 taught that tariffs indeed cause temporary inflation but have also a negative impact on growth which eventually weighs on inflation. Today's context is very different of course and we will see how this evolves.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

    Hence then, the article about ecb s rehn great uncertainty is restraining economic activity was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.

    Read More Details
    Finally We wish PressBee provided you with enough information of ( ECB's Rehn: Great uncertainty is restraining economic activity )

    Apple Storegoogle play

    Last updated :

    Also on site :