ECB Vice President warns of second-round inflation risks

The European Central Bank (ECB) is prepared to intervene if current inflationary pressures become a permanent fixture of the economy, according to Vice President Luis de Guindos. While the central bank cannot stop the immediate spike in energy costs caused by geopolitical conflict, it remains vigilant against "second-round effects" where price hikes spread to broader goods and services.

Last week, the ECB opted to maintain current interest rates but signaled a shift toward tightening policy should high energy costs begin to influence wage negotiations or corporate pricing strategies.