ECB's Cipollone Downplays Stagflation Risk from Hormuz Crisis

European Central Bank policymaker Piero Cipollone has downplayed the risk of stagflation resulting from the crisis in the Strait of Hormuz, calling it 'remote'.

Cipollone stated that while monitoring changes to the macroeconomic environment is necessary, there are currently no signs pointing to a scenario of stagflation.

The comments come as the global economy grapples with the implications of the crisis in the key shipping route.