ECB must prepare for new shocks including Russian aggression, Simkus says

FRANKFURT, Jan 27 (Reuters) – European Central Bank policy fits the moment and the economy has adapted well to volatility but the bank must prepare for new shocks, possibly from Russia’s military threat, ECB policymaker Gediminas Simkus told Reuters in an interview. The ECB has achieved remarkable success last year, becoming the only major central bank to hit its inflation target, even as U.S. tariffs, war on the European Union’s eastern border, Chinese goods dumping and food price surges kept uncertainty exceptionally high. Simkus argued political turbulence, which started with the pandemic in 2020 and also includes Russia’s invasion of…