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

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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