The upcoming ECB policy meeting comes exactly two weeks after the Russian invasion of Ukraine.
But one thing is certain, inflation will be pushed even higher and growth will be impacted by supply issues and high commodity prices.
President of European Central Bank, Christine Lagarde, attends a news conference following a meeting of the governing council in Frankfurt, Germany February 3, 2022.FRANKFURT — The European Central Bank is set for a cautious approach with its monetary policy meeting this week as Russia's invasion of Ukraine impacts, and potentially derails, many of the policy plans it had for the rest of the year.
In a nutshell, the situation is extremely unpredictable. But one thing is certain, inflation will be pushed even higher and growth will be impacted by supply issues and high commodity prices."Energy prices and inflation will be pushed higher, while growth will weaken," said Dirk Schumacher, an ECB watcher with Natixis, in a recent research note to clients.
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