Cipollone (ECB): ‘The risk of stagflation due to the Hormuz crisis is remote’
Remarks by Piero Cipollone, a member of the ECB’s Executive Board, in an interview with Il Sussidiario.net on the sidelines of the Rimini Meeting
“Nobody has a crystal ball, but it seems to me” that the risk of stagflation linked to the war in the Middle East and the crisis in the Strait of Hormuz “is rather remote”.
Piero Cipollone, a member of the ECB’s Executive Board, made these remarks in an interview with Il Sussidiario.net on the sidelines of the Rimini Meeting. First of all, he explained, “there are signs that the crisis could be resolved soon, and the price of oil also seems to point in that direction.” Furthermore,’ he continued, ‘the latest available data suggest that the European economy, whilst slowing down, is holding up better than expected, and inflation rates remain in line with the baseline scenario of the ECB’s latest projections from last June and appear far removed from the adverse and severe scenarios.’
In any case, according to the member of the ECB’s Executive Board, ‘developments in the macroeconomic environment will certainly need to be monitored, but at present there are no signs to suggest a scenario of possible stagflation’.
