Oil price surge not ruining ECB’s ’good place’, Sleijpen says
#ECB #oil price #Sleijpen #inflation #monetary policy #energy markets #economic resilience
📌 Key Takeaways
- ECB official Sleijpen states oil price surge does not disrupt the ECB's favorable economic position.
- The ECB remains confident in its current monetary policy stance despite rising oil prices.
- Sleijpen emphasizes the ECB's resilience to external shocks like energy market volatility.
- The central bank's assessment suggests inflation control measures remain effective amid oil price increases.
🏷️ Themes
Monetary Policy, Energy Markets
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil holds steady after 5-day winning streak; set for weekly surge on Iran conflict Trump replaces Homeland Security chief Kristi Noem Wall Street ends lower on escalating Iran conflict, report of AI export curbs Trump says he must be involved in selecting Iran’s next leader (South Africa Philippines Nigeria) Oil price surge not ruining ECB’s ’good place’, Sleijpen says By Economy Published 03/06/2026, 02:04 AM Updated 03/06/2026, 02:12 AM Oil price surge not ruining ECB’s ’good place’, Sleijpen says 0 CL -0.63% NG -1.20% By Balazs Koranyi and Bart H. Meijer AMSTERDAM, March 6 - The surge in energy prices this week is not yet enough to move European Central Bank policy from what is currently a "good place" and the bank can in any case tolerate a small overshoot of its inflation target, Dutch central bank governor Olaf Sleijpen said. The ECB has learnt lessons from the 2021/22 inflation surge but must be careful in drawing too many parallels to the current situation since the Iran war-related energy shock is fundamentally different, Sleijpen told Reuters in an interview. Oil and gas prices soared this week as war in the Middle East disrupted supplies, boosting inflation expectations and raising some fears that the ECB would have to tighten policy to stop price growth from going too high and getting entrenched. "While I would not use the word nirvana or Goldilocks anymore, I haven’t dramatically changed my view on where we are, which is still a good place," said Sleijpen. Before the U.S.-Israeli war with Iran broke out last week, he had called the current environment of low inflation, neutral rates and respectable growth a central banker’s nirvana. "I’m still in the good place ... but everything depends on how this conflict will develop," he said. Even if policy does not change at the March 19 meeting, the ECB should discuss the sensitivity analysis around its new projections or consider alternative scenarios, h...
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