ECB floats rate cut scenario
The ECB is open to lowering rates if growth weakens and/or a strong euro hurts the eurozone, according to two sources cited by Reuters.
"Two sources familiar with the ECB's policy discussions said a rate cut was firmly in play if the bloc's economy was to stagnate again after expanding by 0.4% in the first quarter of the year," the report said.
The ECB wouldn't be happy if the euro were to rise as a result of the US-led trade war.
"I'll give you five reasons for a rate cut," the source said before repeating "exchange rate" five times.
The euro isn't exactly strong at 1.1331 but if the US and China become embroiled in a deeper battle, money will begin to flow out of US dollars and into euros.
More at Reuters.
