Economics

ECB Looks Down Exit Path as Politics Threaten to Damp Growth

  • March meeting account shows trade conflict worried officials
  • Tariff threats could hurt confidence and weigh on economy
There’s a "broad consensus" in the ECB governing council to be cautious, says Barclays’s Antonio Garcia Pascual.Source: Bloomberg
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The European Central Bank is finding out just how tricky its policy path could be in a year when political spats are overshadowing the economy.

The account of the March 7-8 Governing Council meeting listed concerns including that U.S. import tariffs -- announced just before the gathering -- would hurt “all countries involved.” It also pointed to potentially unforeseen consequences of Britain’s withdrawal from the European Union and economic slack that might be greater than previously thought.