ECB Must Be Vigilant Facing Stagflation Risks, Vujcic Says

The European Central Bank must be “very agile and vigilant” to keep prices in check as the Iran war brings stagflation risks closer, Governing Council member Boris Vujcic said.

Vujcic — who’ll become ECB vice president in June — said officials are likely to know soon whether fallout from the fighting will require higher interest rates. He warned, though, that recent developments point to increasing dangers of elevated consumer-price growth accompanied by weak economic expansion.