“It would be a mistake [o BCE] rushing to decide on a possible path for changing interest rates”, according to François Villeroy de Galhau, member of the European Central Bank.
At issue is the ongoing war in the Middle Eastwhich will increase energy prices. The size of the increases and their impact are still unknown but, according to him, This scenario should not guide monetary policy decisions.
In recent days, several ECB members have appeared in public statements. The most recent is Villeroy, who simultaneously serves as Governor of the Bank of France. He himself remembers that the ECB “will have updated economic forecasts at the next meetingwithin two weeks”.
It should be remembered that, as a result of the conflict, Iran closed the Strait of Hormuzthrough which 20% to 25% of the oil sold worldwide passes. Iranian forces They also attacked natural gas production infrastructures in Qatarforcing the interruption of work.
All in all, fear of rapid rise in energy pricesas a result of the reduction in supply. As a result, inflation will tend to rise, which could make central banks increase interest rates again, in order to stop this escalation.
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