The European Central Bank does not foresee a recession for the eurozone, despite uncertainties linked to rising energy prices. The Governor of the Bank of France, François Villeroy de Galhau, emphasized this point while discussing the various scenarios studied by the institution.
Even under the most unfavorable scenarios, characterized by persistently high oil prices, economic activity would remain positive. The monetary policy official also dismissed the risk of stagflation, stating that the current situation does not correspond to this type of scenario.
Continued vigilance in the face of inflationary risks
According to the ECB, pressures on energy prices represent a limited share of overall inflation. The main challenge remains preventing these increases from spreading to all goods and services.
In this context, the institution has chosen to maintain its interest rates while highlighting the persistent uncertainties. The focus remains on caution, with particular attention paid to price developments and growth.
Community
Comments
Comments are open, but protected against spam. Initial posts and comments containing links undergo manual review.
Be the first to comment on this article.