European Central Bank Governing Council member Joachim Nagel stated in an interview with Reuters that if the war in Iran leads to a further deterioration in price prospects and sufficient information becomes available in the coming weeks, the central bank might raise interest rates at its April meeting.
"This is certainly an option, but only one of several," the Bundesbank president said in the interview published on Thursday. "I believe that by April, we will have enough data to decide whether action is necessary or if we can wait and see."
Nagel added, "The current situation truly increases inflation risks with each passing day, particularly from a monetary policy perspective, regarding how medium-term inflation expectations—which are our primary concern—will evolve." "We cannot avoid addressing this issue simply because we think the timing is premature."
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