The European Central Bank (ECB) has issued a cautionary note on the impact of trade policy uncertainty, anticipating its negative influence on investment and exports. The bank believes that escalating trade wars could significantly impede economic growth and contribute to inflationary pressures. Currently, inflation is at near its target of 2% as set by the ECB. However, they remain committed to maintaining this level, aiming for a stable price environment. The ECB has opted not to commit to a specific interest rate path, instead presenting forecasts of GDP growth rates: 0.9% for 2025, 1.1% for 2026, and 1.3% for 2027. These projections are broadly aligned with the March estimates for 2025 and 2027, but slightly lower for 2026, which was previously anticipated at 1.2%. Inflation figures have also been revised, showing a projected 2.0% in 2025, 1.6% in 2026, and 2.0% in 2027. These figures are slightly lower than the March forecasts for 2025 (2.3%) and 2026 (1.9%).