ECB's Radev Warns Iran War Fallout Could Unanchor Inflation Expectations if Action Comes Too Late
Updated
Updated · Bloomberg · May 29
ECB's Radev Warns Iran War Fallout Could Unanchor Inflation Expectations if Action Comes Too Late
1 articles · Updated · Bloomberg · May 29
Dimitar Radev said the European Central Bank should not wait too long to respond to the Iran war’s economic fallout, arguing that delayed action could prove more costly than moving earlier.
In Reykjavik on Friday, the Governing Council member said the trade-off is no longer symmetric because inflation expectations risk becoming less firmly anchored.
The warning points to a more hawkish bias inside the ECB as policymakers weigh whether war-driven price pressures could spread beyond an initial energy shock.
Will central banks risk a global recession to contain the inflation shock from the Iran war?
Are today's central banks equipped to handle a 1970s-style oil crisis without causing a deep recession?
Can a US-Iran peace deal undo the catastrophic economic damage from the Hormuz blockade?