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2026-06-13 16:59:17
[ECB Governing Council Member Nagel: Prices May Remain High for a Long Time Even If the Middle East Conflict Subsides] 1. Joachim Nagel, a member of the European Central Bank's Governing Council and President of the Bundesbank, recently stated in an interview with German radio that even if the war with Iran ends quickly, price levels are likely to remain high for an extended period. 2. Nagel pointed out that we may not be able to return to the economic data levels used before the conflict. This is because the supply chain structure has changed significantly, and the additional risk premium required for transporting goods through the Strait of Hormuz may also increase. 3. He further stated that he almost doubts whether the current state of affairs before the regional conflict can truly be replicated. The world is likely to continue to be profoundly affected by uncertainties and ongoing changes beyond this conflict. 4. Nagel believes that in the short term, interest rate hikes will indeed push up refinancing costs for businesses and households; however, from a long-term perspective, ensuring price stability is a crucial component of a healthy economy, and this is precisely the greatest contribution the ECB can make to economic development.
