ECB Governing Council member Sleijpen says the extent of the inflation shock remains unclear

Jinse Finance reported that on June 30, European Central Bank governing council member Olaf Sleijpen stated that the level of inflationary shock caused by the Iran war remains unclear, and policymakers will respond based on subsequent data. In an interview with Bloomberg TV’s Francine Lacqua in Sintra, Portugal, the Dutch official said that although energy costs have already fallen, uncertainty still remains. The European Central Bank is holding its annual forum locally. “From an inflation perspective, the decline in oil prices is certainly good news,” he said on Tuesday. “But what will happen in the future remains to be seen.” Policymakers are examining how US-Iran peace talks and the drop in energy prices might affect euro inflation. This month, the European Central Bank raised interest rates for the first time since 2023, and the market expects another 25 basis points increase before the end of the year.