(Bloomberg) — The European Central Bank is likely to stare down the economic danger posed by US President Donald Trump’s tariffs by opting to leave a potential cut in borrowing costs for another day.
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In their final decision before a seven-week summer break, policymakers on Thursday will probably keep the interest rate unchanged at 2%, pushing off a response to Trump’s threatened tariffs of 30% until they materialize and their impact can be better assessed.
With many officials likely to use the interlude for a long holiday, the temptation to restate that inflation is at target, and to postpone worrying about the economic outlook until new quarterly forecasts are compiled for the Sept. 10-11 meeting, may seem appropriate.
What policymakers do know, however, is that trouble is lurking. Aside from concerns about tariffs, the euro has…
