Finance

ECB's Wunsch says euro at parity may cushion impact of new tariffs

Published by Global Banking & Finance Review

Posted on December 18, 2024

1 min read

· Last updated: January 27, 2026

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MUMBAI (Reuters) - A weaker euro falling to parity with the U.S. dollar would cushion the impact of any new U.S. tariffs on euro zone growth and push up inflation, European Central Bank policymaker

ECB's Wunsch: Euro Parity Could Mitigate Tariff Impact

MUMBAI (Reuters) - A weaker euro falling to parity with the U.S. dollar would cushion the impact of any new U.S. tariffs on euro zone growth and push up inflation, European Central Bank policymaker Pierre Wunsch told Reuters on Wednesday.

The Belgian central bank governor also said in an interview with Reuters' Global Market Forum that four more ECB rate cuts were a "meaningful scenario" but he was open to taking a different path if inflation and growth data required it.

(Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/3KFHrhe)

(Reporting By Divya Chowdhury in Mumbai and Francesco Canepa in Frankfurt; Editing by Tomasz Janowski)

Key Takeaways

  • Euro parity with USD may cushion US tariffs' impact.
  • Pierre Wunsch discusses potential ECB rate cuts.
  • Euro parity could push up euro zone inflation.
  • ECB open to different paths based on economic data.
  • Interview conducted on Reuters' Global Market Forum.

Frequently Asked Questions

What is the main topic?
The article discusses the potential impact of euro parity with the USD on euro zone growth and inflation, and possible ECB rate cuts.
What did Pierre Wunsch suggest?
Pierre Wunsch suggested that euro parity with the USD could cushion the impact of new US tariffs on euro zone growth.
What are the potential actions of the ECB?
The ECB may consider four more rate cuts, but is open to different actions based on inflation and growth data.

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