Escrivá Warns of Global Yields and Energy Price Pressures on ECB Policymakers

Spain's central bank chief, José Luis Escrivá, has expressed concerns over rising global long-term yields and elevated energy prices. As a member of the European Central Bank (ECB) Governing Council, Escrivá warned that current interest rates are not high enough to restrain economic growth.

Escrivá noted that 'we are still not in restrictive territory,' adding that he is beginning to worry about the upward trend in global long-term yields. He suggested that rising yields could put further upward pressure on interest rates.

The governor also warned of potential second-round inflationary effects if energy prices remain elevated. If this scenario materializes, it would be a cause for concern, Escrivá stated.