The grim warning was a change of tune for the top EU banking official, who had earlier this month taken a more cautious stance on the war and its effects on the European economy, saying it was too early to say how things were going to turn out, signaling the ECB would not be rushing into any monetary policy adjustments but it stands ready to use them. In a recent forecast, the organization predicted that U.S. inflation could hit 4.2% this year because of the war, while economic growth slows to 2% as a result of increased pressure on consumers, the OECD also said, as cited by the Financial Times. “The speed and magnitude of the move underscore how quickly energy markets are repricing geopolitical risk, challenging earlier efforts to keep both oil and bond markets anchored, and reinforcing the risk of sustained disruption in the Strait,” Yardeni Research said in a note, as quoted by CNBC.
Author: Irina Slav
Published at: 2026-03-30 22:00:00
Still want to read the full version? Full article
