ECB’s de Guindos: It is very important to avoid a trade war

• We need a prudent and intelligent approach regarding latest tariffs announcement
• Need to keep a clear head
• Our analysis on tariffs is that it leads to impact on supply
• The impact on inflation is less clear
• Have to take into account all factors on monetary policy

He’s mostly reaffirming a meeting-by-meeting approach as they are waiting to see how all of this plays out. In the meantime, it won’t be stopping them from cutting rates again in March at least.

This article was written by Justin Low at www.forexlive.com.