Middle East crisis could lead Eurozone into stagflation, BoG governor say [vid]

The war between Israel and Hamas could lead the Eurozone into stagflation, Bank of Greece governor Yannis Stournaras said on Wednesday. In comments made to the newspaper “Financial Times”, the Greek central banker said that the war could create new challenges for the European economy, from a turbulence in the energy market to an influx of refugees, adding that since the Eurozone remained a big net energy importer, the conflict could have a stagflationary impact.

He noted that the crisis in the Middle East shifted the balance against those who wished any further tightening in monetary policy.