ECB board member dismisses near-term stagflation threat, citing well-calibrated policy and stable inflation outlook.
European Central Bank Executive Board member Piero Cipollone stated the risk of economic stagnation combined with a sharp inflation rise due to the Strait of Hormuz crisis remains remote. He emphasized monetary policy is appropriately calibrated for current conditions.
Inflation is not signaling adverse or severe scenarios, and no indicators point to stagflation. The remarks follow recent geopolitical tensions that had raised concerns over energy supply disruptions and broader economic impacts.
The EUR/USD pair showed minimal movement, trading 0.04% lower at 1.1675 following the comments.