Knock on effects outside of energy prices would result if the situation also gave rise to a "repricing of risk in financial markets”, he said. If the war triggered higher energy prices that would likely be inflationary, driving up prices across the economy, although an extreme spike could hit growth so badly demand stalls. “This is not an environment where I see an argument in favour of taking a bit of risk on inflation,” Philip Lane said. Despite the likelihood that higher oil prices would also weigh on the economy, such an outcome would probably be inflationary on a net basis, he said. "We don't know much so I would certainly not rush to react to any movements to energy prices," Wunsch said.

Source: Irish Independent March 03, 2026 19:00 UTC