FRANKFURT (Reuters) – U.S. trade barriers will weigh on growth but their impact on inflation was far less certain, making it imperative that the ECB did not commit to any particular move until it had a body of evidence in data, the accounts of their March 5-6 meeting showed.
“The point was made that the likely shocks on the horizon, including from escalating trade tensions, and uncertainty more generally, risked significantly weighing on growth,” the accounts showed on Thursday. “It was argued that these factors could increase the risk of undershooting the inflation target in the medium term.”
“The combination of U.S. tariffs and retaliation measures could also pose upside risks to inflation, especially in the near term,” the ECB added.
(Reporting by Balazs Koranyi; Editing by Alison Williams)
