ECB to Raise Interest Rates in June Amid Inflation Concerns, Survey Finds

The European Central Bank (ECB) is set to increase interest rates by 0.25 percentage points in June due to rising inflation caused by the ongoing conflict in Iran, according to a survey conducted by Bloomberg from April 9 to 15. However, this rate hike is likely to be the only such measure, as the conflict is not expected to lead to long-term price shocks. According to Jin10, the survey indicates that inflation in the eurozone is projected to rise to 2.8% this year, surpassing the previous forecast of 2%. It is expected to decrease to 2.1% by 2026 and further decline to 2% by 2027, aligning with the ECB's target. Sources suggest that ECB officials currently favor maintaining the interest rates unchanged at the upcoming meeting at the end of April. Some, including the head of Germany's central bank, believe that action at that time cannot be entirely ruled out.