ECB's Wunsch says euro at parity may cushion impact of new tariffs
Published by Global Banking & Finance Review®
Posted on December 18, 2024
1 min readLast updated: January 27, 2026

Published by Global Banking & Finance Review®
Posted on December 18, 2024
1 min readLast updated: January 27, 2026

ECB's Pierre Wunsch suggests euro parity with USD could mitigate US tariffs' impact on euro zone growth, potentially leading to ECB rate cuts.
MUMBAI (Reuters) - A weaker euro falling to parity with the U.S. dollar would cushion the impact of any new U.S. tariffs on euro zone growth and push up inflation, European Central Bank policymaker Pierre Wunsch told Reuters on Wednesday.
The Belgian central bank governor also said in an interview with Reuters' Global Market Forum that four more ECB rate cuts were a "meaningful scenario" but he was open to taking a different path if inflation and growth data required it.
(Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/3KFHrhe)
(Reporting By Divya Chowdhury in Mumbai and Francesco Canepa in Frankfurt; Editing by Tomasz Janowski)
The article discusses the potential impact of euro parity with the USD on euro zone growth and inflation, and possible ECB rate cuts.
Pierre Wunsch suggested that euro parity with the USD could cushion the impact of new US tariffs on euro zone growth.
The ECB may consider four more rate cuts, but is open to different actions based on inflation and growth data.
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