The European Central Bank faces an economic environment in which “some of the worst-case scenarios that we had identified are materialising”, according to José Luis Escrivá, governor of the Bank of Spain and a member of the ECB’s governing council.
Speaking to the Financial Times ahead of the bank’s rate decision next week, Escrivá warned that tariffs imposed by Donald Trump were triggering a “very significant negative shock on economic activity”.
He suggested US policies could bring into question the dollar’s status as a reserve currency and haven.
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