A top European Central Bank official has warned that global trade wars threaten to push up inflation in the Eurozone, limiting the room for further interest rate cuts in the currency area.
ECB hawk Isabel Schnabel, a member of the central bank’s six-person executive board, said in a speech in the US on Friday night that protectionism and a surge in defence spending in Europe, particularly Germany, meant policymakers needed to “keep a steady hand and maintain rates close to where they are today”.
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