ECB Policymaker Radev Warns Against Policy Delays Amid Iran Conflict Spillover

GateNews
According to ECB Governing Council member Radev, the central bank should avoid delays in responding to spillover effects from the Iran conflict on inflation. The Bulgarian central bank governor stated that "the trade-offs are not symmetric given risks that inflation expectations could become unanchored." He added that "the cost of acting too late could exceed the cost of acting earlier." European central bank policymakers appear poised for their first rate hike since 2023, as Middle East tensions have pushed inflation above the ECB's 2% target, though some officials advocate for monitoring spillover effects before intervening.
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