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European Central Bank Board Member Olli Rehn affirmed that the energy price shock resulting from tensions in the Middle East has not yet impacted wages or other prices. He explained that the effect has been weaker than expected, though there are potential risks of gradual impacts emerging in the future. He pointed out that the rise in long-term interest rates contributes to slowing economic growth and limits the transmission of higher energy costs to other sectors, while a balanced monetary policy remains in place. Additionally, increasing public debt and investments in artificial intelligence are hindering the transmission of inflation and rising costs.
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