- Tariffs are definitely a deflationary measure
- US policies are worse than expected, creating global policy uncertainty
- A notable adverse impact on growth could lead to activity being much weaker than expected
- That will in turn drag inflation below our targets
- No comment if the latest developments call for a 50 bps rate cut in April
- Full transcript (may be gated)
It’s interesting to see him put out a bold take on the inflation outlook, with regards to the impact from tariffs. It’s still too early to judge the overall impact as there will be many changes to the moving parts on trade policies in the months ahead. Mind you, Stournaras hasn’t mentioned anything about retaliatory tariffs. So, that’s another point to consider in all this in the weeks/months ahead.
This article was written by Justin Low at www.forexlive.com.
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