As global trade tensions escalate, the European Central Bankis closely monitoring inflation indicators across the euro area. According to its latest monthly survey, there has been a noticeable shift in consumer expectations regarding inflation, placing the ECB in a delicate position between maintaining price stability and supporting economic growthespecially as the risk of a full-blown trade war looms, potentially threatening market stability.
Philip Lane, Chief Economist at the European Central Bank ECB, emphasized the necessity of adopting a balanced approach to interest rates, urging policymakers to avoid excessive caution when considering rate hikes or cuts and to seek a middle path between acting too quickly and moving too slowly.
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