ECB Official Radev Warns of Faster Inflation Expectations
ECB official Dimitar Radev says the bank must be ready to raise rates if inflation expectations rise. Energy costs from the Iran war have increased price risks.
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The European Central Bank must remain prepared to raise interest rates swiftly if signs of persistent price pressures emerge, according to ECB policymaker Dimitar Radev. Radev, the head of the central bank of Bulgaria, noted that inflation expectations are at risk of rising more rapidly than in previous cycles. Surging energy costs, exacerbated by the conflict in Iran[country:{ value:"IR" "]}, have already pushed inflation significantly above the bank's 2% target.
The balance of risks has shifted in an unfavourable direction.
