ECB's Panetta: Reduced room to cut rates further, but macro outlook remains weak ...Middle East

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ECBs Panetta: Reduced room to cut rates further, but macro outlook remains weak
Reduced room to cut rates further, but macro outlook remains weak and trade tensions could worsen it.Future rate decisions need to be assessed on case by case basis, weighing data, inflation and growth outlook.Essential to maintain pragmatic and flexible approach, closely monitor liquidity conditions.Disinflation has not taken too high a toll on the Eurozone economy and is now close to completion.Outcome of trade negotiations uncertain but impact on European economy bound to be significant.Sectors most exposed to tariffs already showing signs of falling confidence, weaker expectations on orders and employment.

He's a dove but he's sounding more neutral here. The ECB is getting close to its estimated neutral rate, so they are now getting even more data-dependent for further rate reductions.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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