ECB's Centeno: Tariffs imposed by US are deflationary

European Central Bank (ECB) policymaker Mario Centeno said on Friday that that the tariffs imposed by the United States will have a deflationary effect in the Eurozone, per Reuters.

Commenting on the policy outlook, "the rate reduction cycle is likely to continue in 2025, but we do not know at what pace and it will be decided at each meeting," Centeno said and added that the downtrend of inflation could worsen until the beginning of next year, possibly approaching the dangerous level of 1%.

Market reaction

EUR/USD stays under modest bearish pressure on Friday and was last seen losing 0.15% on a daily basis.