ECB Should Raise Rates in June Despite Potential Iran Peace Deal, Says Schnabel

According to ECB Executive Board member Kerstin Schnabel, on May 26, the European Central Bank should raise rates in June even if Iran peace negotiations succeed, citing the lasting damage to energy infrastructure and ongoing inflation pressures.

Snabel noted that energy costs have caused substantial damage to global supply chains, with inflation rising well above the ECB's 2% target. She stated that second-round effects may already be emerging, as the shock spreads to broader economic sectors.