European Central Bank Governing Council member Pierre Wunsch stated in an interview on Monday that if the energy crisis triggered by the Middle East conflict lasts for an extended period, the central bank may need to raise its benchmark interest rate multiple times, with the first move potentially occurring later this month.
The National Bank of Belgium Governor remarked, "I would personally prefer to phrase it this way: if the conflict has not ended by the end of June, I believe we will have to raise rates, but I do not rule out the possibility of a rate hike in April either."
He indicated that while policymakers cannot alter the direct impact of the crisis on energy prices, they can work to limit its effects on the prices of other goods and services.
Comments