Christodoulos Patsalides, a member of the European Central Bank's board, warns that if US President-elect Donald Trump follows through on his threatened trade tariffs, the European economy could ultimately fall into stagflation. "Trade tensions are escalating," said the Cyprus Central Bank governor on Thursday in Nicosia. "If trade restrictions become a reality, the outcome could be inflation, economic recession, or worse, stagflation." He said that although there is room for further lowering of borrowing costs, it should be done "at a stable pace and magnitude."