ECB's Kocher: No Evidence of Second-Round Effects, Yet
European Central Bank (ECB) Governing Council member Martin Kocher expressed skepticism about the likelihood of second-round effects on inflation, stating 'I don't see any hard evidence of second-round effects.' However, he emphasized that the ECB will take action if the inflation outlook worsens. Slovenian central bank chief Primož Dolenc echoed similar concerns, warning of high risks ahead and citing the ongoing war in Iran as a factor contributing to these adverse risks.
Kocher also highlighted the recent developments in oil markets, calling them 'concerning.' The ECB is reportedly on high alert for the next couple of weeks, ready to act if necessary. In terms of economic growth, Kocher stated that while the forecast isn't great, he doesn't see a recession on the horizon.