ECB governing council member radev said the ECB should avoid prolonged delay in
responding to fallout from the Iran war, warning inf expectations could become
unanchored and that the cost of inaction may exceed earlier intervention. He
said the current trade-off is asymmetric. The Middle East conflict has driven
inf well above the ECB's 2% target and policymakers appear close to the first
rate hike since 2023, though some officials favour waiting to assess spillovers
while others cite growth risks.
