LONDON, June 17 (Reuters) – A repeat of the 2022 inflation shock that sent interest rates to their highest level in decades looks less likely at the current juncture but can’t be entirely excluded, Dutch European Central Bank policymaker Olaf Sleijpen said on Wednesday.
“For monetary policy, the key issue is again the risk of second-round effects,” Sleijpen said in a speech at an event organised by the European Economics and Financial Centre (EEFC) in London.
The week’s framework peace deal between the United States and Iran after nearly four months of war in the Middle East had also pushed down both spot market oil prices and market expectations for future levels, he added.
“A repeat of 2022 appears less likely, but it cannot be excluded.”
(Reporting by Marc Jones; editing by Balazs Koranyi in Frankfurt)
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