According to Tagesanzeiger, Pablo Hernández de Cos, one of two potential successors to ECB President Christine Lagarde, cautioned on Saturday that policymakers should remain vigilant about inflation risks stemming from elevated energy prices. De Cos noted that second-round effects have not yet materialized, but added that expectations for a swift conflict resolution and subsequent energy price decline have not been realized, necessitating continued vigilance on inflation. He indicated that central banks should raise rates only if latest data shows risks to price stability.

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