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ECB's Holzmann says potential trade war may require unconventional monetary policies

Published by Global Banking & Finance Review

Posted on April 2, 2025

1 min read

· Last updated: January 24, 2026

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ECB's Holzmann says potential trade war may require unconventional monetary policies
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ECB's Holzmann: Trade War Could Demand New Monetary Policies

BUCHAREST (Reuters) - A potential trade war once U.S. President Donald Trump announces an array of new tariffs may require unconventional policies from central banks, European Central Bank policymaker Robert Holzmann said on Wednesday.

Holzmann, who said the hope was that policymakers would be better equipped to enforce the policies, added central banks cannot be responsible for the whole economy apart from inflation and financial stability.

(Reporting by Luiza Ilie;Editing by Elaine Hardcastle)

Key Takeaways

  • Potential trade war may prompt unconventional monetary policies.
  • US tariffs could impact global economic strategies.
  • ECB's Holzmann emphasizes central banks' limited role.
  • Monetary policies are crucial for financial stability.
  • Policymakers need to be well-equipped for economic challenges.

Frequently Asked Questions

What is the main topic?
The article discusses the potential need for unconventional monetary policies in response to a trade war initiated by new US tariffs.
Who is Robert Holzmann?
Robert Holzmann is a policymaker at the European Central Bank who commented on the potential economic impacts of a trade war.
What role do central banks play according to Holzmann?
Holzmann states that central banks are responsible for inflation and financial stability but cannot manage the entire economy.

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