Challenges for the ECB Amid Global Trade Uncertainties

This chapter explores the European Central Bank's dilemma as it faces the prospect of its eighth consecutive rate cut, amidst internal debates and shifting EU-US trade dynamics. It highlights how US tariffs and disinflationary pressures might influence the euro area economy, while discussing Europe's current economic indicators and the evolving role of the euro as a potential reserve currency. Additionally, the chapter delves into the ECB's strategies for navigating economic growth challenges in an environment marked by geopolitical factors and contrasting central bank approaches.