European Central Bank's Mahrouf: If the Middle East war continues, the eurozone will face an adverse scenario
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```htmlAccording to Golden Ten Data on April 1st, European Central Bank official Mahrouf stated that if a prolonged war breaks out in the Middle East, the eurozone economy will perform worse than the baseline scenario set by policymakers last month. He said: “As the conflict persists without a clear resolution, a longer period of high prices becomes more likely. This is gradually approaching the adverse scenario predicted by staff.” He noted that currently energy prices are between the baseline scenario and the adverse scenario, but “true uncertainty still exists.” The adverse scenario expects inflation to rise to 4.2% later this year, while the economy will only contract in the second quarter.```
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