ECB Policymaker Stournaras: Monetary Policy Must Tighten if Inflation Exceeds 2% Target

According to Jin10, ECB policymaker Yannis Stournaras said on Monday that the central bank should carefully adjust monetary policy toward a more restrictive stance if euro area inflation temporarily but significantly exceeds its 2% target. He cited ongoing disruptions to oil and gas supplies via the Strait of Hormuz due to the Iran conflict, which could fuel secondary effects on wages and prices for goods and services. Stournaras emphasized the need to balance inflation control with economic protection, stating that policy responses should be calibrated to dampen second-round inflation effects without causing excessive damage to economic activity and investment.
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