Bundesbank chief cites Iran energy shock and rising inflation spread probability as key factors for potential ECB action.
European Central Bank Governing Council member Joachim Nagel indicated the ECB may raise rates in June due to persistent inflation pressures. The Iran energy shock and rising risks of broader inflation spread were cited as primary concerns driving the potential move.
Recent ECB communications have leaned hawkish, with inflation prints exceeding forecasts. Markets had priced in a pause, but Nagel’s remarks suggest a shift toward tighter policy amid stubborn price pressures.
No immediate market reaction was detailed, though traders may reassess ECB rate expectations ahead of the June meeting.