(March 24): The European Central Bank (ECB) must be “very agile and vigilant” to keep prices in check as the Iran war brings stagflation risks closer, Governing Council member Boris Vujcic said. Vujcic — who’ll become ECB vice-president in June — said officials are likely to know soon whether fallout from the fighting will require higher interest rates. He warned, though, that recent developments point to increasing dangers of elevated consumer-price growth accompanied by weak economic expansion. “We do not see stagflation but the risk is moving into the direction of stagflation,” the Croatian central bank chief said in an interview in Zagreb. If the ECB was confronted with higher prices and lower growth due to a lengthier war, however, the focus should be obvious, he cautioned.

Source: The Edge Markets March 24, 2026 07:09 UTC