By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member José Luis Escrivá said on Friday that it remains “difficult” to gauge the impact of the recent energy price surge linked to the Middle East conflict, suggesting it may not warrant an interest rate hike.
In an interview with Spanish news agency Agencia EFE, Escrivá, who heads the Banco de España, said that it was “very difficult to know exactly what the impact of this rise in energy prices will be.”
He stressed that the ECB based its policy decisions on medium-term inflation trends and noted that “sometimes there are situations that subside and do not necessarily entail a change in interest rates.”
Escrivá added that the current environment was “highly uncertain and volatile” and that policymakers must continue assessing a broad set of incoming data.
Related articles:
- ECB’s Escrivá: Rate Hike at Next Meeting “Very Unlikely”
- ECB’s Escrivá: Need to Remain Agile in Case Inflation Outlook Shifts in Either Direction
