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2026-05-29 21:47:37
[ECB Governing Council Member Radev: Action to Address the Impact of the Iran Conflict Should Not Be Delayed; Costs May Outweigh the Costs of Early Intervention] ⑴ ECB Governing Council member Radev stated that the ECB should avoid delaying its response to the aftermath of the Iran conflict. ⑵ The Bulgarian central bank governor pointed out: "Given the risk that inflation expectations may become less stable, the trade-offs at this stage are not asymmetrical." ⑶ He added: "The cost of slow action may outweigh the cost of earlier intervention." ⑷ After the Middle East conflict caused inflation to far exceed the 2% target level, policymakers appear to be on the verge of their first interest rate hike since 2023. However, some officials believe the ECB should observe the spillover effects before intervening; others are concerned about the risks to economic growth.
