ECB’s Makhlouf: Concerned About Inflation’s Impact, ECB Will Do Whatever Is Needed
30 March 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Wednesday expressed concern about high rates of inflation and said that the ECB would take all warranted steps in pursuit of price stability.
In an opening statement before a committee of the parliament of the Republic of Ireland, Makhlouf, who heads the Central Bank of Ireland, observed that energy price rises to date do not yet entirely incorporate the Russian attack on Ukraine, and that rising Covid-19 case numbers were not yet fully understood.
‘We are concerned at the impact of inflation’, he said.
‘As for the economic consequences of the war in Ukraine, it is too early to give a definitive view’, he said. ‘It clearly represents a significant challenge to the outlook for inflation and growth and adds new uncertainty to what had started to become a less uncertain picture.’
Russian military aggression would significantly impact growth and inflation, he said. ‘Of course, as far as inflation is concerned, the Governing Council will take whatever action is needed to fulfil the ECB’s mandate to pursue price stability’, he added.