ECB's Stournaras Says 1 Rate Hike Is Inevitable Next Month as Iran Tensions Worsen Inflation
Updated
Updated · Bloomberg · May 23
ECB's Stournaras Says 1 Rate Hike Is Inevitable Next Month as Iran Tensions Worsen Inflation
1 articles · Updated · Bloomberg · May 23
Next month’s ECB rate increase may be unavoidable, Governing Council member Yannis Stournaras said, arguing policymakers must act to preserve credibility.
Inflation prospects are worsening because no US-Iran peace deal has been reached, he said, raising the risk that euro-area consumers doubt the ECB will follow through on its warnings.
Stournaras made the remarks in Nicosia while attending a meeting of European finance ministers, underscoring how geopolitical tensions are feeding directly into the euro-zone policy debate.
As the Iran conflict fuels inflation, can an ECB rate hike fix Europe's economy without causing a deep recession?
Beyond rate hikes, how can Europe permanently shield its economy from Middle Eastern geopolitical shocks?
With the Strait of Hormuz closed and oil soaring, is Europe on the brink of a 1970s-style stagflation crisis?