European Central Bank Governing Council member and Deutsche Bundesbank President Joachim Nagel said the euro-zone economy has moved between the ECB’s baseline and adverse scenarios due to the Iran war. Speaking at the IMF spring meetings, he said the situation is “very opaque” and policy must retain “full optionality.” He warned inflation is “well anchored” but fragile, with rising energy costs complicating rate decisions. ECB President Christine Lagarde said policymakers must stay “completely a

European Central Bank Governing Council member and Deutsche Bundesbank President Joachim Nagel said the euro-zone economy has moved between the ECB’s baseline and adverse scenarios due to the Iran war. Speaking at the IMF spring meetings, he said the situation is “very opaque” and policy must retain “full optionality.” He warned inflation is “well anchored” but fragile, with rising energy costs complicating rate decisions. ECB President Christine Lagarde said policymakers must stay “completely agile,” while investors expect two rate hikes this year.