ECB’s Schnabel: Iran war creates upside inflation risks

Isabel Schnabel, European Central Bank (ECB) member, said that the ECB’s is still in a good place even though the Iran war created some upside inflation risks at the 2026 United States (US) Monetary Policy Forum in New York on Friday.

Key takeaways:

Small, temporary inflation overshoot of little relevance if expectations remain anchored.

Still in a good place but Iran war creates upside inflation risks.

Post pandemic lessons suggest must tread carefully.

Needs to be vigilant; monitor expectations, wages, firms passing on costs.”