Islam Times – The European Central Bank (ECB) joined a growing cohort of key financial and economic bodies warning about the economic impact of the war in West Asia.Announcing its decision to keep interest rates on hold, the bank said today that the economic outlook was now “significantly more uncertain”.
“The war in the Middle East has made the outlook significantly more uncertain… it will have a material impact on near-term inflation through higher energy prices,” it announced in a statement.
The ECB, which sets monetary policy for the 21 countries that use the euro, also added that the medium-term implications of the war would depend “both on the intensity and duration of the conflict”.
Speaking to reporters, the ECB’s President, Christine Lagarde, stated that the bank was “both well-positioned and well-equipped” to deal with the “major shock that is unfolding”.