MNI BRIEF: Big Disinflation Risk From China -ECB's Cipollone

The eurozone faces both upside and downside inflation risks, but the risk which should most worry the European Central Bank is a potential diversion of Chinese exports as a result of U.S. tariffs, ECB Executive Board member Piero Cipollone told an MNI Connect livestreamed event.

They [the Chinese] have to sell their goods somewhere,” he said.

Economic risks are “seriously in the downward direction”, Cipollone said, adding that energy prices could also exert pressure to the upside. (See MNI INTERVIEW: EU More Prepared, But Vulnerable, To US Tariffs)