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ECB Official Stournaras: Modest Rate Hikes Can Reduce Economic Pain While Controlling Inflation, May 16

GateNews
Forex

According to Jin10, on May 16, European Central Bank Governing Council member Yannis Stournaras stated that modest rate increases by the ECB could curb inflation without causing significant economic damage. If inflation remains temporarily elevated above target levels, the ECB should adopt a gentler approach to monetary policy tightening in the future to prevent further inflation spread while limiting economic impact. Stournaras also warned that uncertainty is rising due to potential supply chain pressures from energy infrastructure damage in the Gulf region, though he noted no strong evidence currently exists for second-round inflation effects.

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