Schnabel Says ECB Will Need to Hike If Energy Shock Broadens

The European Central Bank will have to raise interest rates if the Iran war leaves a more lasting mark on inflation, according to Executive Board member Isabel Schnabel.

A “rapidly growing share” of firms plans to raise prices, supply chains face disruptions and households are adjusting their expectations, the German official said Thursday. With memories of the last inflation shock still fresh, the current crisis won’t take as long to be felt, she said.