Cipollone Downplays Risk of Economic Stagnation Due to Strait of Hormuz Crisis

European Central Bank (ECB) Executive Board member Piero Cipollone has downplayed the risk of economic stagnation and a sharp increase in inflation due to the crisis in the Strait of Hormuz.

Cipollone stated that this risk is 'rather remote', according to Reuters. This comment comes at a time when global markets are closely watching developments in the region, which includes key oil-producing countries.

The EUR/USD pair currently trades 0.04% lower at around 1.1675. The European Central Bank's primary mandate is to maintain price stability, and it achieves this by setting interest rates and managing monetary policy.