ECB Minutes: Global Trade Tensions Could Slow Eurozone Growth Further
Last month, the ECB kept policy unchanged as expected, staying on track to wrap up a 2.6 trillion-euro ($3 trillion) bond purchases scheme this year and raise interest rates next autumn. Today’s release of the ECB protocol showed, that the global trade tensions could slow the Eurozone economic growth further.
The ECB said in the accounts of the September 13 meeting, that policymakers ultimately decided that the domestic economy was showing considerable resilience, so risks to growth remained balanced, even if some argued that the factors behind the recent slowdown may not be temporary. Policymakers also concluded that domestic cost pressures continued to build and broaden, indicating that inflation would rise, moving back towards the bank's target of almost 2% after undershooting it for over five years.
Some policymakers have warned that external risks, ranging from trade tensions to an emerging market shakeout and Brexit, could derail global growth. Still, the actual impact of trade tensions has been limited so far, even if there could still be an impact over time.