ECB's Cipollone Downplays Stagflation Risk from Hormuz Crisis

European Central Bank (ECB) policymaker Piero Cipollone has downplayed the risk of economic stagnation and high inflation due to the crisis in the Strait of Hormuz.

In an interview with Italy's ilsussidiario.net, published on Monday, August 24, Cipollone stated that the scenario of stagflation is 'rather remote' for now.

Cipollone emphasized the need to monitor changes in the macroeconomic environment but noted that there are no signs pointing to a stagflation scenario at this time.