ECB Urged to Exercise Caution Amid Iran Conflict Impact

The European Central Bank (ECB) should approach interest rate hikes with caution, according to Vice President Luis de Guindos. Bloomberg posted on X that de Guindos emphasized the need for careful consideration due to the ongoing effects of the Iran conflict on economic growth. The full impact of the situation has yet to be realized, and the ECB must weigh these uncertainties when making monetary policy decisions. De Guindos's comments highlight the challenges central banks face in balancing inflation control with economic stability amid geopolitical tensions.