TREE NEWS update: European Central Bank (ECB) Governing Council member and Bank of France Governor Villeroy stated that inflation is mainly driven by the Middle East conflict and energy-related factors. Medium-term inflation expectations of firms and households remain well anchored. He also added that rising interest rates could dampen demand and lead to a more gradual response to inflation shocks.
ECB’s Villeroy: Inflation Mainly Driven by Middle East Conflict and Energy Factors
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