ECB Sees No Iran War Spillover, Ready to Act if Inflation Expectations Shift
Updated
Updated · KFGO · Jul 15
ECB Sees No Iran War Spillover, Ready to Act if Inflation Expectations Shift
3 articles · Updated · KFGO · Jul 15
Summary
Martin Kocher said the ECB currently sees no second-round inflation effects from the U.S.-Israeli war on Iran, though it is watching indirect price pressures closely.
High uncertainty around the conflict’s intensity is driving that vigilance, and Kocher said the central bank stands ready to deploy monetary policy measures at any time if needed.
Euro-area inflation expectations remain well anchored over the medium and long term, which Kocher said reflects confidence in the ECB’s commitment to price stability.
The euro zone is weathering the shock relatively resiliently for now, but Kocher warned a longer Iran war would make the economic phase increasingly difficult.