Ms Schnabel started her presentation by noting that since the Governing Council's previous monetary policy meeting on 18-19 March 2026, movements in euro area financial markets had continued to be driven by developments in the Middle East and their impact on energy prices. Amid elevated volatility, markets continued to expect the oil price shock to be persistent. Although upside risks had moderated, oil was priced significantly higher, over an extended period of time, than it had been before the start of the war in the Middle East. As a result, markets continued to price in a notable and sustained inflationary ... (full story)