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ECB Governing Council Member Sleijpen: The Extent of Inflation Shock Remains Unclear

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On June 30, ECB Governing Council member Olaf Sleijpen stated that the extent of the inflation shock caused by the Iran war is still unclear, and policymakers will take action based on subsequent data. The Dutch official made these remarks during an interview with Bloomberg's Francine Lacqua in Sintra, Portugal, where the ECB is holding its annual forum. 'From an inflation perspective, the drop in oil prices is certainly good news,' he said on Tuesday. 'But what will happen in the future remains to be seen.' Policymakers are examining how the U.S.-Iran peace negotiations and falling energy prices will affect eurozone inflation. The ECB raised interest rates for the first time since 2023 this month, with the market expecting another 25 basis point hike by the end of the year.
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