BERLIN (Reuters) -European Central Bank policymaker Joachim Nagel said that a “steady hand” was required to deal with the uncertainty unleashed by U.S. President Donald Trump’s latest tariff threat, in comments to business daily Handelsblatt. In terms of monetary policy, “politics with a steady hand” is currently required, Nagel said in the interview, which the […]
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ECB’s Nagel calls for ‘steady hand’ amid tariff turmoil
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BERLIN (Reuters) -European Central Bank policymaker Joachim Nagel said that a “steady hand” was required to deal with the uncertainty unleashed by U.S. President Donald Trump’s latest tariff threat, in comments to business daily Handelsblatt.
In terms of monetary policy, “politics with a steady hand” is currently required, Nagel said in the interview, which the German newspaper published late on Tuesday.
The effect on prices of both the geopolitical environment and the trade conflict with the United States was “extremely uncertain”, he added.
The ECB signalled after its June meeting that it was likely to keep interest rates unchanged when it meets again next week.
Five ECB policymakers told Reuters that Trump’s threatened 30% tariff on EU imports is complicating the central bank’s decision-making but is unlikely to derail that plan.
(Reporting by Rachel More, editing by Thomas Seythal)