[ECB Governing Council Member Radev: ECB Should Avoid Delay in Responding to the Shocks of War] ECB Governing Council member Rudy Radev stated that the European Central Bank (ECB) should avoid delaying its response to the aftermath of the war with Iran. The Bulgarian central bank governor noted, "Given the risk that inflation expectations may become less stable, the trade-offs at this stage are not asymmetrical." He added, "The cost of delay may outweigh the cost of earlier intervention." After the Middle East conflict caused inflation to far exceed the 2% target level, policymakers appear to be on the verge of their first interest rate hike since 2023. However, some officials believe the ECB should observe the spillover effects before intervening; others are concerned about the risks to economic growth.
