Daily SumUp

US President Donald Trump’s sweeping tariffs risk triggering a large “negative demand shock” in the Eurozone, a senior European Central Bank policymaker said as the ECB weighs an interest rate decision later this month.

In an interview with the Financial Times, Greece’s central bank governor Yannis Stournaras warned that the looming global trade war was likely to weigh heavily on Europe’s economic growth. “A notable adverse impact on growth could lead to activity being much weaker than expected, dragging inflation below our targets,” he said.

One of the longest-sitting members on the ECB’s governing council, Stournaras warned that the euro area was facing the shock just when the outlook for growth was already “modest” and inflation was on track to meet the ECB’s medium-term target of 2 per cent. The ECB is set to make its next interest rate