Gabriel Makhlouf, the Central Bank governor, emphasized the seriousness of potential tariffs and the uncertainty they generate for businesses. In an interview, he noted that President Trump's fluctuating stance on tariffs complicates planning and weighs down investment decisions in the European market. Makhlouf concluded that tariffs tend to negatively affect both importers and exporters, particularly the jurisdictions that impose them. He also discussed recent ECB decisions on interest rates aimed at achieving the inflation target, indicating ongoing efforts to control inflation amidst these uncertainties.
It would be a mistake for us not to take this seriously, and to plan on the basis that tariffs are coming, despite the uncertainty created by the flip-flopping.
One of the biggest issues right now is the degree of uncertainty that is being created, which weighs on investment decisions. It's difficult for businesses to plan.
Tariffs ultimately are a negative for everybody. History tells us that the biggest negative is on the jurisdiction that imposes the tariff in the first place.
The important thing that happened yesterday was an ongoing confirmation that we are reducing inflation, and we are on track to reduce it to our 2pc target in the medium term.
Collection
[
|
...
]