Hernandez de Cos: We need to be wary of the inflationary risks brought about by high energy prices.

European Central Bank (ECB) presidential candidate and Governing Council member Hernandez de Kos stated that monetary policymakers should continue to monitor the inflation risks posed by high energy prices. While a second wave of effects has not yet materialized, the anticipated decline in energy prices has not been realized, thus necessitating vigilance regarding inflation risks. Hernandez de Kos is concerned that high debt levels in some economies pose a risk during periods of rising borrowing costs. Some countries have historically high public debt and persistently high fiscal deficits; higher interest rates will increase the cost of repaying debt. (Source: Jinshi Data)