ECB Rate Hikes Grow More Likely as Iran War Keeps Energy Prices High
Updated
Updated · Bloomberg · May 12
ECB Rate Hikes Grow More Likely as Iran War Keeps Energy Prices High
5 articles · Updated · Bloomberg · May 12
Joachim Nagel said ECB rate increases are becoming increasingly likely unless the euro zone inflation outlook changes fundamentally.
High energy prices tied to the Iran war are driving that risk, with the Bundesbank chief saying policymakers cannot ignore the inflationary pressure.
Nagel still said he sees some hope for a significant easing of tensions in the Middle East, but his warning signals a more hawkish policy path if the conflict keeps fuel costs elevated.
With Europe's economy stalling, could the ECB's war on inflation trigger a more dangerous stagflation crisis?
As the Iran war exposes Europe's energy weakness, what is the continent's real plan for achieving autonomy?