ECB board member Philip Lane cites rising energy prices and uncertainty as key risks to growth and inflation projections.
European Central Bank Executive Board member Philip Lane said heightened geopolitical tensions in the Middle East are worsening the euro area’s economic outlook. Survey data and indicators point to increased uncertainty, with high energy prices dampening consumption and investment across Europe.
The ECB had already factored some downside risks into its March forecasts, but Lane indicated the June Governing Council meeting may revisit projections if the conflict persists. Oil prices remain above earlier estimates, while gas supply expectations from the U.S. have softened the impact on Europe.
Lane noted that prolonged weakness could further weigh on economic activity, though the full extent of revisions will be assessed next month.