ECB's Stournaras says higher inflation from US tariffs could delay monetary policy normalisation

Reuters

Tue, Apr 8, 2025, 3:17 AM 2 min read

ATHENS -European Central Bank policymaker Yannis Stournaras said connected Tuesday that apt higher ostentation and a planetary commercialized warfare pursuing U.S. President Donald Trump's imposition of tariffs could hold normalization of euro portion monetary policy.

"Any further resurgence successful ostentation oregon ostentation expectations could hold oregon adjacent halt the process of monetary argumentation normalization, worsening fiscal conditions and maturation momentum," Stournaras, who is politician of the Bank of Greece, said astatine the Greek cardinal bank's yearly shareholders' meeting.

A rout successful planetary fiscal markets triggered by the U.S. tariffs strategy has solidified the lawsuit for different ECB complaint chopped adjacent week and supports arguments for adjacent quicker argumentation easing from the world's 2nd largest cardinal bank, economists say.

As good arsenic the United States and Europe, different countries wherever the U.S. has not imposed duties would consciousness the pinch of slowing planetary trade, helium said, arsenic planetary economies were intertwined.

"Tariffs imposed connected 1 country's imports would impact different countries participating successful the planetary (supply) chains, adjacent if nary countermeasures were imposed," helium said.

Greece's economy, which is expected to turn astatine a 2.3% this twelvemonth and proceed outpacing its euro portion peers, volition spot constricted nonstop interaction from the U.S. duties, Stournaras said.

But the country, which exports olive oil, lipid and its trademark feta food to the United States, mightiness spot request for its products and services drop, portion rising planetary uncertainty could dent the appetite for concern successful the state arsenic it recovers from a 2009-2018 indebtedness crisis.

"For Greece, the effect to these challenges lies with keeping up its reliable fiscal policy, attracting concern and implementing reforms," helium added.

(Reporting by Lefteris Papadimas; Writing by Angeliki Koutantou; Editing by Susan Fenton and Hugh Lawson)