ECB's Makhlouf: Concerned about higher-for-longer energy price scenario

Eren Sengezer FXStreet

European Central Bank (ECB) Governing Council member Gabriel Makhlouf said on Friday that without a clear timeline for the end of the conflict in the Middle East, he is concerned about a "higher-for-longer" energy price scenario, per Reuters.

Key takeaways

"Inflation expectations need to be closely monitored for signs of de-anchoring."

"I will be paying close attention to indirect effects such as cost-push inflation in production, transportation, and services."

"Potential second-round effects via wages will take longer to show up, given the staggered nature of wage-setting."

Market reaction

EUR/USD holds its ground in the American session and trades in positive territory above 1.1750.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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