ECB Official Highlights Trade Protectionism as Major Economic Risk

Olli Rehn, a member of the European Central Bank (ECB) Governing Council, expressed concerns on Wednesday about the increasing trend of trade protectionism. His comments come as U.S. President Donald Trump is set to impose new tariffs on European goods, a move that could further strain the Eurozone's fragile economic recovery.

Eurozone's Growth Outlook and Monetary Policy Stance

Despite the weakening growth outlook for the Eurozone, Rehn reassured that the disinflationary process is progressing as expected. He emphasized the ECB's commitment to maintaining flexibility in its monetary policy decisions, stating, "We will not commit to a particular monetary policy stance" due to the prevailing uncertainties. The ECB aims to "maintain complete freedom of action" in its upcoming meetings to navigate through these challenging times.