European Central Bank Governing Council member Yannis Stournaras on Sunday said the ECB's policy response to the Middle East shock would depend on the intensity, duration and transmission channels of the disruption, and that a robust response would be needed if inflation deviated significantly and persistently from target. Stournaras, who heads the Bank of Greece, told Cypriot newspaper Phileleftheros in an interview that the Middle East war represented a serious supply-side shock causing stagflationary pressures. 'This is a challenge for the ECB, as it must balance stabilizing inflation at target and avoiding ... (full story)