MNI BRIEF: ECB Guindos: Gulf Crisis Has Raised Uncertainty

Financial markets have so far behaved in an "orderly" way following the outbreak of conflict in the Middle East, ECB Vice President Luis de Guindos said at an event in Brussels Thursday. 

But the crisis has "raised the level of uncertainty" from a sitiuation where the balance of risks on inflation had been balanced and the ECB had been in a "good place", adding that he now thinks "you have to go to a different approach". 

The baseline scenario of the ECB was for a short-lived conflict, he said, but it could also prove to be more protracted, in which case there was a danger that inflation expectations could start to rise. (see MNI SOURCES: ECB's Ukraine Lesson Lowers Oil Shock Tolerance )