Dutch Bank: The European Central Bank must protect the economic recovery from hawkish influences.

On April 1, Jin10 reported that Christophe Boucher, an analyst at Dutch Bank, stated that the European Central Bank should not allow hawkish individuals to take advantage of the recently emerging economic rebound. The Eurozone’s annual inflation rate slowed again in March, reaching 2.2%, close to the European Central Bank’s 2% target. Trade tariffs may lead to a spike in inflation, but this impact is only temporary. Although there are positive signs of economic growth and a labor market, the European Central Bank may need to continue cutting interest rates to alleviate the policy burden on the Eurozone economy. The European Central Bank should not view this as a reason to stop the rate-cutting cycle, as suggested by some hawkish officials. Boucher warned that a tightening of the European Central Bank’s tone could affect confidence and ultimately impact demand.