How will Europe’s central banks react to the Middle East crisis?
ECB unlikely to veer from rate path as it had expected to undershoot during 2026
Central banks in Europe are closely monitoring the situation in the Middle East and weighing up their options for responding to a spike in inflation.
Following the joint Israel-US attack on Iran and the Islamic republic’s response, energy prices spiked, which is likely to leave an imprint on inflation readings. European natural gas futures, which had hovered around €30/MWh ($34.8) for the past month, have now more than doubled to €62/MWh. Brent crude has risen from $65–72 to $84 per barrel.
Stefan
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
RBA governor says conflict may require monetary policy response
Bullock says board considering potential supply shocks amid already high levels of inflation
Banxico took it easy for too long, says economist
Academic believes inflation will remain a challenge for central bank and government
Monetary dominance depends on comparative advantage – paper
Money that is ‘too good’ as a store of value may not circulate, authors say
Monetary policy in Asia since the pandemic
Asean+3 nations must plan to tackle ‘disturbance’, ‘structural’ and ‘radical’ uncertainty using a disciplined policy mix to preserve price stability amid global shocks, writes Dong He
Waller: my next FOMC vote is ‘close to a coin flip’
Governor says January’s positive jobs figures may be ‘noise’ rather than ‘signal’
Jamaica cuts rates as outlook for inflation improves
Figure expected to return to target by December, central bank says
High tariff regime in the US is ‘here to stay’ – BoE’s Taylor
Impact on trade flows and pricing will take years to play out, MPC member says
Banxico minutes signal potential resumption of rate-cutting cycle
One-off hit of tax rises and tariffs could see rates cut in March