ECB considers economy strong despite trade tensions

Economy 7/12/2018, 1:53 PM
ECB considers economy strong despite trade tensions

According to the latest account of the European Central Bank's June policy meeting released on Thursday, officials voted unanimously to scale back its quantitative easing program from €30 billion to €15 billion in September.

The minutes further revealed that despite recent "trade tensions" and poorer than expected data, risks to the economic outlook remain broadly unchanged. "While the incoming data had been somewhat weaker than previously expected, the fundamentals remained in place for the medium-term growth outlook to remain solid and broad-based," policymakers concluded.

"In particular, concerns were expressed about the possibility that such [trade] tensions could lead to a more general decline in confidence throughout the global economy, beyond any direct effects from the imposition of tariffs," the minutes said. In June, the ECB announced its decision to taper the QE program and exit it by the end of the year.

Breaking the News / JC