Nagel Says ECB Can React Quickly on Inflation Risks If Needed

The European Central Bank is ready to respond swiftly to signs that inflation expectations are surpassing 2% because of the Iran war, according to Governing Council member Joachim Nagel.

While monetary policy can’t prevent energy shocks causing short-term diversions from the target, the ECB must act if actual price gains have ripple effects that could affect the medium-term trend, the Bundesbank president said in a speech in Goslar, Germany.