IMF Kammer: ECB needs to be ready to be tighter, or looser, on my care policy

IMF Kammer is now speaking on Europe and says:

• “Tit for tat” on trade and subsidies will be very distracting for European economy, structural reforms needed
• we are expecting gradual reduction in policy rates.
• ECB needs to be ready to be tighter, or looser, on monetary policy based on uncertainties.
• If tightening path for US diverges from baseline, there is upside risk for European inflation

More comments:

• US inflation driven by demand, EU inflation driven by energy price shocks.
• EUs disinflation driven by fall in energy prices, supply chain disruptions easing and affects of monetary policy

This article was written by Greg Michalowski at www.forexlive.com.