Facing brutal uncertainty.Q2, Q3 growth will be almost flat.Consumption as a driver hasn’t happened.Current interest rate position is correct.Seen remarkable services inflation deceleration.Inflation figure has been positive.Rate policy is compatible with convergence to 2% target.We must keep all rate options open because of uncertainty.Doubts regarding US are reflected in the dollar.The euro could be reserve currency if Europe does it right.I hope there is a US-EU trade agreement by July 9.
Central bankers have been lamenting about high uncertainty since Trump started with his tariffs. The Fed has been the only central bank taking a more cautious approach and not adjusting monetary policy, while others like the ECB delivered rate cuts because of growth fears.
This article was written by Giuseppe Dellamotta at www.forexlive.com.