European Central Bank Governing Council member Stournaras: Interest rates should not be adjusted hastily due to the situation in Iran.

Yannis Stournaras, a member of the European Central Bank's Governing Council, said that the ECB should avoid taking action too early in response to escalating tensions in the Middle East. Report cited the traditionally dovish Greek central bank governor as saying, "The impact on inflation and output will depend on the duration and intensity of the armed conflict." "Given the lack of visibility on both fronts and considering the inflation outlook, I believe it is not appropriate to hastily adjust any monetary policy parameters at this time, but rather to remain vigilant and closely monitor the situation." Like many of his colleagues, Stournaras said that the ECB should maintain a calm mindset while being prepared for action. In a phone interview, he stated, "If negotiations were to start tomorrow, the situation would ease; if tensions continue to escalate, inflation will face upward pressure. I do not rule out either possibility, so we should demonstrate flexibility."