European Central Bank Governing Council member Joachim Nagel stated that the inflationary shock stemming from conflict in the Middle East is not over, with consumer price increases in the eurozone projected to stay elevated.
The Bundesbank President said on Tuesday, "I expect the inflation rate to continue to be significantly above our target. The energy price shock that began with the conflict in the Middle East is not over yet, and its effects are still present in the economic system."
Nagel made these remarks while speaking in Sintra, Portugal, where the ECB is holding its annual forum. He declined to speculate on the possibility of another interest rate hike, stating that his colleagues should "keep all options open," while adding that monetary policy "needs to remain vigilant."
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