Frankfurt, Germany – Anxieties over economic growth driven by US President Donald Trump’s customs attack will probably pressure the European central bank to reduce interest rates on Thursday for the seventh time, a step that can make the credit and customers more affordable and promoted economic activities.
At the last meeting of the March e on the March e, ECB’s President Christine Legard increased the chances of an upcoming “break” in the series of bank rate decreasing in Legard. However, this option was virtually eliminated on April 2, when Trump shocked the global trade partners with an unexpectedly high tariff or import tax of 10% to 49% on the global trade partners.
Analysts say that a quarter-power of the bank’s benchmark should be reduced by 2.25%at the bank’s rescue council meeting on Thursday in Frankfurt. From 2022 to 2021, the bank is steadily increasing after the bank has sharply extended to fight the outbreak of inflation.
Now the inflation that has declined, the concerns of growth have taken the center of the center. In the last three months of 2021, the economy has increased by a modest 0.2% in 20 countries that have used Euro. In March, inflation was 2.2%, close to 2% of the bank target.
The bank’s benchmark rates throughout the whole economy. Low interest rates make orrow and buy products from home to new factory equipment makes it less expensive. It supports spending, business investment and appointment.
Trump has postponed tariffs for 90 days, but economists and policy makers are concerned that the higher expenses that he has proposed for Europe for Europe will depend on business activities – and if he carries it, it causes slow growth or even recession. The US largest trade partner in the United States that crosses the Atlantic on both sides of the goods and services of about 4.4 billion euros ($ 5 billion).
As the European Commission says, “Translatantic trade relationship is the most important commercial relationship in the world.”
Uncertainty is another reason that can slow down the economy as Trump’s breakfast breaks it out where the tariff rate is actually settled. If traders do not know what will be their expenses, they can stop deciding.
Economists of Berrenberg Bank think that some tariffs will be discussed in the mid-year, will end at about 12%. However, it is about 10 percent higher than the average tariff before Trump. On top of this, 25% tariffs from all countries to autos, which will strictly hit Europe’s auto industry.
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