ECB’s Schnabel says bank can take time to assess Iran shock

ECB’s Schnabel said the euro zone is in a favourable position after bringing inflation back to 2% before the Iran war, adding policy is broadly neutral and the ECB can take time to assess whether the shock creates lasting second-round effects. Schnabel signalled the ECB has room to stay patient after the Iran shock, arguing inflation is back… Schnabel signalled the ECB has room to stay patient after the Iran shock, arguing inflation is back at target and policy is neutral, allowing officials to wait for evidence of any lasting second-ro... Schnabel signalled the ECB has room to stay patient after the Iran shock, arguing inflation is back at target and policy is neutral, allowing officials to wait for evidence of any lasting second-round effects. Summary: ECB’s Isabel Schnabel said the euro zone is in a relatively favourable position because inflation had already been brought back to 2% before the Iran war began. She said the ECB’s policy stance is now… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.