ECB Shouldn’t Rush Iran Response or Overreact, Schnabel Says

The European Central Bank shouldn’t rush its response to the Iran war and must be careful not to “overreact,” Executive Board member Isabel Schnabel said, while urging officials to remain agile and vigilant.

The German official, who’s widely seen as the ECB’s most hawkish interest rate-setter, said Friday in Zurich that Europe is facing a “massive energy price shock” that’s caused a “sharp” increase in investors’ expectations of future inflation. But she said the ECB must “carefully weigh” its decisions.