Aug 24 (Adnkonos/GNA) – Regarding the possibility of stagflation in the Eurozone due to the Hormuz crisis, “no one has a crystal ball, but it seems to me that this risk is rather remote.” Piero Cipollone, member of the ECB’s executive board, explained this in an interview with ilsussidiario.net.
He noted that “the evolution of the macroeconomic framework will certainly need to be monitored, but at the moment there are no signs that suggest a possible stagflation scenario.”
He explained, “there are signs that the crisis could be resolved soon, and even the price of oil seems to indicate this.”
“Furthermore, the latest available data indicate that the European economy, although slowing, is responding better than expected, and inflation levels remain within the baseline scenario of the ECB’s latest projections from last June and appear far from the adverse and severe scenarios”, he added.
GNA/Red-Lab/Labitalia