Comments by ECB member / Bank of France governor Villeroy

  • Should resist two temptations: financial complacency and protectionist escalation
  • Neither US or UK should take the path of unilateral deregulation
  • Regulatory competition would be nothing less than a lose-lose scenario
  • Escalation of protectionist threats by the US would dampen growth everywhere
  • 10% increase in tariffs would diminish world trade by double digit figures
  • That would also decrease global GDP by more than 2%
  • Recent uncertainty over trade is having negative effects on investment

Villeroy mainly touching on trade issues at the moment. Nothing on monetary policy just yet. It's quite a wonder though that he's able to quantify the impact of the tariffs and trade spat from the US.