ECB Urged to Stay Flexible on Inflation as Strait of Hormuz Reopening Could Ease Energy Costs
Updated
Updated · Bloomberg · Oct 5
ECB Urged to Stay Flexible on Inflation as Strait of Hormuz Reopening Could Ease Energy Costs
3 articles · Updated · Bloomberg · Oct 5
Summary
Joachim Nagel said the ECB must be prepared for multiple inflation outcomes because Middle East tensions are still dominating the consumer-price outlook.
A sustained reopening of the Strait of Hormuz and normalized energy flows would ease pressure on prices, he said, pointing to energy markets as the key transmission channel.
Nagel warned that any renewed escalation could disrupt supplies again and push oil and gas costs even higher, complicating the ECB’s policy path.