European Central Bank (ECB) Governing Council member Yannis Stournaras said on Thursday that “trade tariffs are likely to provoke a response. And a 25 basis points (bps) rate cut in December is the right response.”
Additional quotes
We should cut every meeting until rates reach 2%.
The neutral rate on average is about 2%.
It’s too soon to say if ECB needs to go below neutral.
Market reaction
At the time of writing, EUR/USD is testing intraday lows at 1.0515, down 0.25% on the day.
Source: https://www.fxstreet.com/news/ecbs-stournaras-a-25-bps-december-rate-cut-is-the-right-response-to-trade-tariffs-202411210947