ECB's de Guindos says it is important to have a cool head when it comes to setting policy. Middle East shock may be impacting inflation to a greater degree than growth.

The ECB's de Guindos emphasizes the importance of a measured approach to policy setting amidst rising inflation influenced by Middle East developments. This suggests that while inflationary pressures may be increasing, growth impact remains moderate, potentially keeping the ECB on a cautious but measured path for future rate decisions. Watch for potential implications on the euro and bond markets, as shifts in sentiment with respect to inflation could influence expectations for monetary policy.