European Central Bank chief economist Philip Lane told policymakers on Friday that the Russia-Ukraine was could shave 0.3%-0.4% off the eurozone GDP in the middle scenario, Reuters reported, citing people familiar with the matter.
“Presented severe scenario where GDP is cut by close to 1%.”
“The mild scenario showed no impact, now seen as unlikely.”
“These were ‘back-of-envelope’ preliminary calculations, mostly derived from commodity prices.”
Told meeting there would be a significant increase to 2022 inflation forecast.”
“Hinted at inflation below target at end of horizon.”
The shared currency stays on the back foot on Friday and the EUR/USD pair was last seen losing 0.17% on a daily basis at 1.1172.