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ECB's Stournaras: A 25 bps December rate cut is the right response to trade tariffs

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ECB's Stournaras: A 25 bps December rate cut is the right response to trade tariffs

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New update 2024.11.21 18:48
ECB's Stournaras: A 25 bps December rate cut is the right response to trade tariffs

update 2024.11.21 18:48

European Central Bank (ECB) Governing Council member Yannis Stournaras said on Thursday that "trade tariffs are likely to provoke a response. And a 25 basis points (bps) rate cut in December is the right response."

Additional quotes

We should cut every meeting until rates reach 2%.

The neutral rate on average is about 2%.

It's too soon to say if ECB needs to go below neutral.

Market reaction 

At the time of writing, EUR/USD is testing intraday lows at 1.0515, down 0.25% on the day.  


Date

Created

 : 2024.11.21

Update

Last updated

 : 2024.11.21

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