ECB Must Act If Iran War Threatens Price Stability, Nagel Says

The European Central Bank will continue analyzing the economy before deciding next month whether to raise interest rates, but policymakers must take action if the Iran war jeopardizes price stability, according to Governing Council member Joachim Nagel.

Having discussed a hike in borrowing costs at the last meeting in April, the ECB now needs to see how big and lasting an influence the fighting in the Middle East has on inflation and economic growth, the Bundesbank president said Tuesday in Zurich.