European Central Bank (ECB) member Pierre Wunsch said on Wednesday that “four more rate cuts is a significant scenario that I am relatively comfortable with.”
Featured Statements
The impact of tariffs depends on the reaction in the exchange rate.
A further depreciation of the euro would cushion the impact of tariffs on growth.
But it would have a greater impact on inflation.
If the Euro reaches parity with the dollar, we would not lose so much in terms of competitiveness.
I suppose we will land with rates around 2%.
Four more rate cuts is a significant scenario that I am relatively comfortable with.
There is no appetite to change the inflation target.
Market reaction
At the time of writing, EUR/USD is defending bets around 1.0500, awaiting the Fed’s decision for a new direction.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
