ECB Holds Off Pushing the Alarm Button Over Global Risks

European Central Bank policy makers held back from raising the alarm about risks to the euro-area outlook even after a debate that noted mounting global threats. At its last policy meeting, the Governing Council focused on the impact of trade protectionism and even said that there was a case for characterizing the risks as “tilted to the downside given the clear prevalence of downward global risks.” It ultimately decided that the strength of the domestic economy meant it could stick to “broadly balanced.” The debate during the Sept. 12-13 meeting highlights the difficult navigation for the ECB as it starts to wind down its stimulus while also keeping an eye on global trade disputes, emerging market turmoil and Italy’s budget-related bond ructions. President Mario Draghi has since said the euro-area economy is strong enough to cope with global tensions. Read more here