OR European Central Bank unable to assume firm commitments to interest rates Due to the increased unforeseen status in terms of trade, according to the President of the Central Bank Christine Lagarde.

While the process of deflation remains “on the right track”, Lagarde told European MPs in Brussels that the eurozone is particularly exposed to changes in tariff policy, which weakens confidence in the ECB’s forecasts.

“Especially in the current conditions of increasing uncertainty, we will follow an approach that will depend on data and on a meeting at a meeting to determine the appropriate monetary policy.”Lagarde said on Thursday, according to Bloomberg. “We are not committed to a specific course of interest rates in advance.”

Inflation declines allowed the ECB to gradually reduce interest rates, with the latest 25 -base points reduction this month to leave the deposit rate to 2.5%. Whether and when there will be further reductions is increasingly difficult to assess due to commercial tensions with the US, the uncertainty about a peace deal in Ukraine and the upcoming “jump” in European defense spending.

All this makes investors less confident that there will be a seventh interest rates in April, though they are still leaning towards two more this year. Supporting this view, Eurostat announced on Wednesday that February inflation was slower than it was originally estimated at 2.3%.

The key will be whether budgetary exposures can offset any losses from US duties in the fragile eurozone economy, as well as the possible impact of the two factors on prices.

Lagarde cited the ECB analysis, according to which a 25% US duty on European imports would reduce the region’s economic growth by about 0.3 percentage points in the first year. The retaliation of the European Union would increase the rate further to about half a percentage point. At the same time, the prospects of inflation will become significantly more uncertain, Lagarde stressed. In the short term, European retaliation and a weaker exchange rate of the euro could increase the increase in prices by about half a percentage point, he said.

Lagarde had warned earlier about bilateral dangers in the prospects of inflation. Cautiousness prevails elsewhere, as US Federal Bank (FED) kept interest rates unchanged on Wednesday And the Bank of England is expected to do the same later today.