Speaking in a pre-recorded interview at a financial conference on Tuesday, European Central Bank (ECB) board member Piero Cipollone said that US tariffs would weaken the economy, translating into lower consumption and thus reduced pressure on prices.

“All this put together makes me think that we will have a reduction in growth but also a reduction in inflation,” he said.

Market reaction At the time of writing, EUR/USD is off the highs, trading 0.20% higher on the day at 1.0517.