ECB Lowers Eurozone Growth Rate... "EU Economy Very Concerning"

The European Central Bank (ECB) has expressed concerns about the European economy.

Mario Centeno, a policy committee member of the European Central Bank, stated in an interview with CNBC on the 7th, "We are very concerned about the European economy." Earlier, the European Central Bank lowered its economic growth forecast for the 20 Eurozone countries using the euro from 1.1% to 0.9%, a reduction of 0.2 percentage points. The economic growth forecast for next year was also reduced by 0.2 percentage points from 1.4% to 1.2%.

Commissioner Centeno emphasized that "investment within Europe has significantly contracted." He predicted, "It will take 4 years for private sector investment (in Europe) to return to 2023 levels," and added, "returning to 2022 levels will only be possible by 2028."

He also hinted at additional interest rate cuts. The European Central Bank lowered its deposit rate, which serves as the benchmark for monetary policy, by 0.25 percentage points from 2.75% to 2.5% per annum the previous day. Commissioner Centeno said, "We predict that inflation will reach 2% in the medium term," adding, "However, this prediction requires additional interest rate adjustments."

He also pointed out U.S. President Donald Trump's aggressive tariff policy. Commissioner Centeno stated, "Tariffs are taxes on both consumption and production," and added, "As a result, no one will benefit from a 'tariff war.'"