ECB’s Lane Says Still Can’t Determine Extent of War Shock

It’s still unclear how big a blow the Iran war will inflict on the euro-area economy, according to European Central Bank Chief Economist Philip Lane.

“No one really knows how long the situation will last and by the time of next week, I doubt we’re gonna have clarity on that,” Lane said, referencing the ECB’s April 29-30 monetary policy meeting. “Until we know more how long this war is going to last, it is really hard to know whether this is going to prove to be a temporary phase or a much bigger shock to the European economy.”