ECB Officials Urge Scenario Analysis to Cope With Trade Turmoil

The European Central Bank shouldn’t rely too much on its baseline outlook and must be prepared to react quickly if economic growth and inflation diverge from expectations, according to two Governing Council members.

In times of elevated uncertainty “the centralized scenario becomes less informative and I think the way out is to rely more on fully fledged, well-designed alternative scenarios that should gain relevance,” Spain’s Jose Luis Escriva said Tuesday.