Bond.az reports: European Central Bank board member Isabel Schnabel said the ECB should raise interest rates in June, even if an Iran peace deal is reached, as energy infrastructure damage and high prices persist.
In an interview with Reuters, Schnabel noted that the conflict has lasted longer than expected and high energy costs are spilling over into the broader economy.
The ECB has kept rates on hold for a year but debated a hike last month as inflation exceeded its 2% target. Schnabel stated that looking through the shock is no longer an option.
While peace talks with Iran may progress, Schnabel believes the ECB may be past a point of no return. She highlighted that second-round effects are already visible, and further rate decisions should be data-dependent.
