Yannis Stournaras, governor of Bank of Greece, speaks at the European Central Bank (ECB)’s International Women’s Day 2026 Conference in Frankfurt, Germany, on Monday, March 2, 2026. Photographer: Alex Kraus\/Bloomberg via Getty Images<\/p>\n
Bloomberg | Bloomberg | Getty Images<\/p>\n
European Central Bank<\/a> policymaker Yiannis Stournaras said on Monday that if euro<\/a> zone inflation overshoots the ECB target temporarily but significantly, there should be a cautious adjustment of monetary policy in a more restrictive direction.<\/p>\n Stournaras noted that the closure of the Strait of Hormuz<\/a> amid the ongoing war in Iran has led to a spike in oil and natural gas prices, with a possible secondary effect on wages and prices of goods and services<\/a>.<\/p>\n “In the event of a significant but temporary overshooting of the inflation target, the response should be balanced; a cautious adjustment of monetary policy in a more restrictive direction, capable of limiting the intensity of second-round effects, without, however, harming economic activity disproportionately,” Stournaras said during a hearing in the Greek parliament.<\/p>\n It was necessary to ensure the return of inflation to the ECB’s medium-term target of 2%, while not burdening economic activity and investment with an overly restrictive monetary stance, he added.<\/p>\n The Greek government last month proposed renewing the term of Stournaras as the governor of Greece’s central bank.<\/p>\n