ECB ready to act if Iran war pushes up inflation
Joachim Nagel said the ECB will act if energy price spikes from the Iran war cause durable inflation. Markets now see a possible rate hike by year end.
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The European Central Bank (ECB) is prepared to intervene if the ongoing conflict involving Iran triggers a sustained rise in energy costs and subsequent euro zone inflation. Joachim Nagel, the head of the Bundesbank in Germany, emphasized that the central bank would respond decisively to prevent broad consumer price increases from taking hold in the medium term.
