ECB's Cipollone: There is still room for adjusting rates downward ...Middle East

Inflation is almost reaching the targetEconomic fundamentals not significantly different from December projectionsRate cuts are coherent with declining inflation pictureNo recession seen, soft landing is still the main scenarioUS tariffs on China could force Beijing to dump goods on EuropeThat could weigh on growth, inflation

So far, the ECB outlook hasn't changed by much since the turn of the year. The next rate cut is still expected in March but what comes after remains a toss up for the time being. Trump has already threatened Canada and Mexico with tariffs for starters and it's only a matter of time before Europe is next up in line. And that's the key risk that the ECB is watching out for currently.

This article was written by Justin Low at www.forexlive.com.

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