(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
The war in Ukraine is unlikely to lead to a stagflationary episode, European Central Bank Governing Council member Joachim Nagel told German newspaper Handelsblatt.
“I don’t expect stagflation at the moment, even though the fallout of the war will boost inflation rates and weaken economic growth,” said Nagel, who also heads the Bundesbank. Currently, there are “no signs” of a wage-price spiral, he added.
Nagel labeled last week’s ECB decisions to accelerate an exit from bond purchases while staying nimble on the timing of an interest-rate increase a “good and balanced” approach. “I consider it very important that we don’t precommit in times of high uncertainty but stay flexible.”
©2022 Bloomberg L.P.