Sleijpen Says ECB Will Act If Needed to Keep Inflation at Target

The European Central Bank is prepared to respond if the Iran war drives inflation away from its 2% target, according to Governing Council member Olaf Sleijpen.

“Persistently high oil prices will ultimately feed through to the prices of other products, and thus also to wage formation, which could amplify inflationary effects,” he said in a speech on Thursday in Amsterdam. “In that case, the ECB will naturally intervene to keep inflation around 2% in the medium term.”