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

European Central Bank policymaker José Luis Escrivá expressed concern about rising global bond yields and high energy prices. Speaking on Tuesday, he noted that interest rates have not yet reached levels that would restrict economic growth. However, he warned that the continued increase in bond yields could add upward pressure to interest rates.

Escrivá emphasized that current interest rates are not restrictive, but rather highlighted the potential risks of rising long-term rates. He stated, 'We are still not in a restrictive territory. What I would start to worry about is the global upward trajectory of long-term rates.'

The policymaker also addressed concerns over energy prices, noting that sustained high prices could trigger second-round inflation effects.