European Central Bank Governing Council member Madis Muller stated on Tuesday that the ECB's ability to implement further rate cuts remains uncertain and will largely depend on tariffs.
Speaking during an event on the Bank of Estonia's economic forecast, Muller highlighted that any additional rate reductions would rely on trade developments. He added that the current rates are not restricting economic growth or investment.
Muller also warned that tariffs, particularly a potential 25% tariff on EU exports from the US, are likely to result in faster inflation in the short term. However, he does not foresee them triggering an economic recession in Estonia
