European Central Bank board member Lane: Middle East conflict brings "stagflation" impact, July interest rate hike still depends on data.

According to the Smart Finance and Economics APP, Olli Rehn, member of the European Central Bank governing council and Governor of the Bank of Finland, stated that the Middle East conflict has pushed up energy prices, causing a typical "stagflation" impact on the European economy, with inflationary pressures intensifying on one hand and dragging down economic growth on the other. However, he believes that the current rise in energy prices has not yet spread to the broader economy, so the European Central Bank will continue to rely on economic data to determine the next steps in monetary policy.