Core Viewpoint - The European Central Bank (ECB) indicates that trade tensions will lead to a slowdown in economic growth and inflation [1] Economic Impact - Trade escalation is expected to negatively impact economic growth rates across the Eurozone [1] - The ECB suggests that inflation rates may also experience a deceleration due to these trade conflicts [1] Policy Implications - The ECB may need to adjust its monetary policy in response to the anticipated economic slowdown and inflationary pressures [1] - Potential changes in interest rates or other monetary tools could be considered to mitigate the effects of trade tensions [1]