Eurozone Faces Inflation Risk, ECB Considers Rate Hikes Amid Middle East War
The European Central Bank is on alert for persistent price pressures and ready to raise interest rates swiftly, as the Middle East conflict poses a risk of a self-reinforcing price spiral in the Eurozone. This echoes past challenges where the central bank's policy tightening during oil shocks proved costly.
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The ECB is stirring memories of 2011 — not all of them good
When the central bank tightened policy in an oil shock it proved a costly error. This time might be different
Read full article →Eurozone faces self-reinforcing price spiral risk from Middle East war
Eurozone inflation expectations are at risk of rising more quickly than in the past and the European Central Bank must be ready to raise interest rates swiftly if signs of persistent price pressures emerge, ECB policymaker Dimitar Radev said. Surging energy costs prompted by the Iran war have already pushed inflation well above the ECB’s […]
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