By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Pierre Wunsch said on Monday that policymakers should not “rush” to respond to recent energy price movements, though the ECB will need to carefully assess the situation if it escalates into a broader oil shock.
Speaking to media in Brussels, Wunsch, who heads the National Bank of Belgium, acknowledged that the ECB does not yet have sufficient clarity about the surge and, given that uncertainty, he cautioned against reacting too quickly.
If the rise in energy prices proved more sustained or intensified further, the ECB would need to “run our models and see what happens,” he said.
The ECB would want to “look through” one-off effects, he said, adding that it would have to be open to react to other developments.
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