Bond.az reports that the European Central Bank is leaning toward an interest rate hike next month as the Iran conflict adds to inflation pressures.
ECB Governing Council member Martin Kocher told Bloomberg that inflation is likely to be higher this year than previously anticipated due to rising energy costs.
Speaking on the sidelines of a European finance ministers meeting in Cyprus, Kocher said policymakers are weighing a choice between keeping rates unchanged and raising them at the ECB’s June meeting.
The ECB’s next policy meeting is scheduled for June 10-11, when updated economic forecasts will be released.
The conflict between Iran and the US has sharply increased oil prices, disrupting shipping through the Strait of Hormuz.
Although US President Donald Trump said a peace agreement with Iran is largely negotiated, details remain undisclosed.
Kocher noted uncertainty remains high and declined to guide on policy beyond the June meeting.
