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ECB Eyes June Rate Hike Amid Iran-Fuelled Inflation

5/5/2026

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Story summary
  • President Joachim Nagel said the ECB needs to raise rates in June if inflation stays weak.
  • Inflation rose to 3 % last month, with oil above $110 per barrel amid the Iran war.
  • Nagel warned the prolonged Iran conflict raises the risk that inflation stays high without monetary intervention.
  • Policymakers Peter Kazimir and Madis Müller said a June hike may be needed, with investors expecting three hikes, the first in July.