Deutsche Bank economist: The European Central Bank is in a dilemma and needs to flexibly respond to the threat of tariffs and national defense spending.

On March 6, Jin Shi Data News, Mark Wall, Chief European Economist at Deutsche Bank, stated that the European Central Bank finds itself in a challenging position. On the one hand, there is the threat of recent U.S. tariffs, which may lead to further interest rate cuts and a shift towards stimulus measures; on the other hand, the European Central Bank is increasingly committing to increasing defense spending in the coming years, which is essential to ensure Europe's strategic autonomy. In this environment, we need to skillfully leverage monetary policy and maintain policy flexibility.