ECB’s Stournaras Sees Recession Concern, Phileleftheros Says

Concern about a possible euro-area recession is “real and justified” as conflict in the Middle East causes a supply-side disruption, European Central Bank Governing Council member Yannis Stournaras said in an interview with Phileleftheros.

Stournaras, who heads Bank of Greece, told the Cyprus-based outlet there’s no sign of significant pass-through of higher energy prices to inflation, though it’s too early for precise estimates. The ECB, which kept rates unchanged last week, is centering its analysis on the risk of so-called second-round effects, such as a buildup of pressure on wages, prices and inflation expectations, he said.