ECB official Sleijpen warns the Iran-war inflation shock is unclear and policy will hinge on future data; oil-price declines help but the path ahead remains uncertain, as talks and energy prices shape euro-area inflation ahead of another hike.
Abstract: The article reports ECB Governing Council member Olaf Sleijpen's comments in Sintra, noting that the inflation impact of the Iran war is still unclear and policy will depend on incoming data. It highlights that lower oil prices are helpful but the trajectory remains uncertain, as U.S.-Iran negotiations and energy prices influence euro-area inflation, with the ECB having recently hiked rates and signaling further tightening.