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Investing.com -- The European Central Bank (ECB) is awaiting a clearer understanding of the impact of U.S. and EU trade policies on inflation before making a decision on potential interest rate cuts in June, according to ECB governing council member Klaas Knot.
Knot, speaking to reporters at the Dutch central bank, said that while a rate cut in June cannot be ruled out, it also cannot be confirmed at this stage.
The ECB’s focus, Knot explained, is on the medium to long term where the effects of trade policies on inflation are more uncertain compared to the short term.
The ECB’s decision-making process is therefore contingent on developing a better understanding of these potential impacts.
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