ECB Must Be ‘Vigilant’ Without Rushing Rate Hikes, Muller Says

The European Central Bank needs to stay “vigilant“ to potential inflation risks from the Iran war but mustn’t act in haste, Governing Council member Madis Muller said.

While there are no signs of broader second-round price effects so far and the ECB is better placed than in 2022, it would be “dangerous” to assume an energy shock will be temporary and can be completely looked through, the Estonian central-bank chief said.