According to Open4business, the energy shock caused by the US war with Iran is likely to be longer than previously expected and will spread beyond the oil sector, European Central Bank (ECB) Executive Board Member Isabelle Schnabel said.
"At first it was possible to assume that this was a short-term phenomenon, but unfortunately we had to see that it is much more persistent," Schnabel said at an event in Italy's Salsomaggiore Terme on Thursday. - This is not only about oil, but also about diesel fuel and gas.
Her words indicate the continued concern of the ECB leadership about the consequences of the Middle East conflict, which has already led to the acceleration of inflation in the region to a level significantly exceeding the target of 2%.
The growth rate of consumer prices in the Eurozone in August reached 3.2% in annual terms, and analysts do not rule out their growth to 4% later this year, writes Bloomberg.
Expectations of further tightening of monetary policy by the ECB have risen recently, with traders considering the possibility of four interest rate hikes by the regulator of 25 basis points (bps) by the end of 2027.
“We have raised interest rates twice this year, first in June and then again in September, because we are concerned inflation That's why we had to react," Schnabel said on Thursday.
The ECB raised all three key rates by 25 bp. at the September meeting, the deposit rate is now 2.5% per annum.
