The European Central Bank (ECB) has the ability to prevent energy-price shocks from spreading to the wider economy, according to Governing Council member Primoz Dolenc.
Speaking in Portoroz, Slovenia, Dolenc emphasized that while monetary policy cannot directly influence energy shocks, geopolitical tensions, or structural competitiveness issues, it can stop these initial price spikes from leading to broader, more persistent inflation.
Dolenc's remarks highlight the ECB's role in maintaining economic stability amid volatile energy markets, a critical concern for policymakers navigating complex global challenges.