According to a report from Jin10, the European Central Bank's meeting minutes show that although trade tensions may temporarily suppress prices, inflation in the Eurozone is almost under control. The ECB cut interest rates for the seventh time last month and warned that U.S. tariffs would severely impact economic growth.
Committee members have increased confidence in the mid-term return to the inflation target level, with anti-inflationary forces dominating in the short term. Although trade tensions have eased, market uncertainty remains, and another interest rate cut is expected in June.
Some policymakers believe that the trade war will lead to inflation in the long term, while short-term trade shocks may trigger inflation due to their destructive impact on global value chains.