Bloomberg Talks The ECB Sintra Forum's Policy Panel Talks Inflation, Rate Cuts
Jul 1, 2025
In a captivating discussion, Andrew Bailey, Governor of the Bank of England, Christine Lagarde, President of the European Central Bank, Jerome Powell, Chair of the Federal Reserve, Chang Yong Rhee, Governor of the Bank of Korea, and Kazuo Ueda, Governor of the Bank of Japan, tackle pressing issues like inflation management and economic fragmentation. They explore the delicate balance of tariffs and monetary policy, the significance of neutral rates, and the vital role of unity among central banks. The panel emphasizes the importance of resilience and strategic communication in a rapidly changing global landscape.
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ECB Inflation Outlook
- The ECB views inflation as having reached its target but remains vigilant amid uncertainty and geopolitical risks.
- It believes it is well-equipped to navigate future economic turbulence while staying committed to price stability.
Fed on Tariff Impact
- U.S. inflation is near target but tariff impacts are yet to materialize significantly.
- The Fed is cautious, preferring to wait for clearer data effects before adjusting policy further.
South Korea's Tariff Stance
- South Korea expects tariffs to be deflationary due to low aggregate demand and falling import prices.
- The central bank continues easing monetary policy but monitors financial stability risks, especially rising housing prices.