The European Central Bank will assess economic conditions at each policy meeting before deciding whether to raise interest rates, ECB policymaker Martin Kocher said, as uncertainty surrounding the Middle East continues to cloud the outlook.
“We have said clearly — and I believe it is the right approach — that, given the high level of uncertainty and the price shock due to the situation in the Middle East, we will assess the situation anew at every meeting,” Kocher told Austrian newspaper Kurier.
Kocher, who is also head of the Austrian National Bank, reiterated that the ECB would avoid committing to a fixed rate path and instead respond to developments as they emerge.
The comments come as the conflict in the Middle East has created a fresh price shock, adding uncertainty to the ECB’s assessment of inflation and the wider economy.
Reuters
