The European Central Bank has not yet detected second-round inflationary effects stemming from the US-Israeli military conflict with Iran, according to Robert Kocher, governor of the Austrian National Bank.
Speaking in Berlin, Kocher emphasized that while the central bank is closely monitoring the situation, the immediate impact on the eurozone price structure remains contained.
Kocher highlighted the high degree of uncertainty surrounding the conflict, noting that the intensity of hostilities continues to fluctuate.
Despite the current lack of broad-based price pressures, he affirmed that the ECB is prepared to take necessary measures should the geopolitical situation escalate and begin to feed into domestic inflation dynamics.
This stance aligns with the central bank's broader commitment to price stability amid external shocks.
The comments add nuance to the ECB's current policy posture.