ECB's Escrivá Sounds Alarm on Rising Bond Yields and Energy Prices

European Central Bank policymaker José Luis Escrivá expressed concerns about rising bond yields and elevated energy prices. He noted that while interest rates have not yet reached restrictive levels, the increasing trend of long-term rates could add upward pressure to interest rates.

Escrivá also highlighted the worry of high energy prices, which he believes can trigger second-round inflation effects if they persist. The policymaker warned that sustained high energy prices could lead to inflationary pressures, underscoring his concerns about the current economic situation.

In a cautionary tone, Escrivá emphasized that the global upward trajectory of long-term rates is what he would start to worry about. He did not specify any specific interest rate levels or targets but stressed that policymakers should remain vigilant in monitoring these developments.