EU’s necessary defence spending boost makes inflation harder to predict, ECB’s Knot says

Annual Report: According to Klaas Knot, President of De Nederlandsche Bank, there is much to be said for partly financing European defence expenditure through European channels.

EU’s necessary defence spending boost makes inflation harder to predict, ECB’s Knot says

AMSTERDAM (Reuters) – Europe is justified in increasing defence spending but this will boost debt and make inflation or monetary policy direction more difficult to predict, Dutch central bank chief Klaas Knot said on Thursday. The ECB has cut interest rates six times since last June but offered few if any signals about future moves, arguing that pervasive uncertainty required vigilance and pragmatic, meeting-by-meeting decision-making. A looming…

The president of the European Central Bank Christine Lagarde speaks at the European Parliament and talks about everything. Duties, economic growth, banks, defense spending, Russian assets, cryptocurrencies. Let's go in order. The prospects of an imminent trade war are, of course, worrying Lagarde. “The ECB's analysis suggests that a 25% US tariff on imports from Europe would reduce euro area growth by about 0.3 percentage points in the first yea…

The President of the ECB points out that if Donald Trump implements his threats he would reduce the growth of all the euro partners by up to half a percentage point during the first year. The forecast for GDP growth in 2025 is currently at a low 0.9%.

The president of the European Central Bank (ECB), Christine Lagarde, warned on Thursday of the consequences of the trade "eye-for-eye" between Washington and Brussels and estimated that the 25% tariffs imposed by the Trump administration on imports of European products will reduce the growth of the eurozone by approximately 0.3 percentage points during the first year. "A European response in the form of an increase in US import tariffs would fur…

A major trade war with the United States could significantly increase inflation and reduce economic growth in the eurozone, European Central Bank (ECB) President Christine Lagarde told the European Parliament's Economic and Monetary Affairs Committee today. According to her, closer cooperation with other countries could be the solution, the ECB said on its website.