ECB’s Stournaras: A 25 bps December rate cut is the right response to trade tariffs

European Central Bank (ECB) Governing Council member Yannis Stournaras said on Thursday that “trade tariffs are likely to provoke a response. And a 25 basis points (bps) rate cut in December is the right response.”

Additional quotes

We should cut every meeting until rates reach 2%.

The neutral rate on average is about 2%.

It's too soon to say if ECB needs to go below neutral.

Market reaction 

At the time of writing, EUR/USD is testing intraday lows at 1.0515, down 0.25% on the day.