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- ECB Economic Bulletin: Russia’s aggression in Ukraine is causing enormous suffering
ECB Economic Bulletin: Russia’s aggression in Ukraine is causing enormous suffering
In an Economic Bulletin article published on Thursday; the European Central Bank (ECB) noted that Russia’s aggression in Ukraine is causing enormous suffering.
Additional takeaways
Global economic activity remained resilient at the start of 2022, with survey data indicating that the Omicron variant of the coronavirus (COVID-19) may only have a short-lived impact on advanced economies.
Several factors point to slow growth also in the period ahead. The war is already weighing on the confidence of businesses and consumers, including through the uncertainty it brings.
Fiscal and monetary policy support remains critical, especially in this difficult geopolitical situation.
Market-based indicators suggest that energy prices will stay high in the near term but will then moderate to some extent. Food prices have also increased sharply.
Supply bottlenecks and the normalization of demand as the economy reopens also continue to put upward pressure on prices.
Market reaction
EUR/USD was last seen trading at 1.0530, stalling its rebound from over five-year lows amid the rampant US dollar surge.
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