The European Central Bank cut interest rates for the sixth time in nine months on Thursday, sticking to its easing plan in the face of economic upheaval from an unfolding trade war and new plans to boost Europe's military spending.
Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday: Link to statement on ECB website: Good afternoon, the Vice-President and I welcome you to our press conference.
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Geopolitics reaches the ECB: Lagarde warns that the trade war generates "uncertainty" while defense spending "contributes to growth"The European Central Bank decrees its fifth consecutive interest rate cut, sets the price of money at 2.5%, and anticipates that the next monetary decisions are not at all clear. Huge uncertainty". "Uncertainty everywhere".
The European Central Bank doesn’t have a role in helping governments finance more defense spending and will stick to its mission of price stability, President Christine Lagarde said.
Nomura now expects the European Central Bank to lower rates only once this year, diverging from most brokerages that still see at least two reductions, after the central bank signalled the possibility of a pause at its latest meeting.
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