ECB Schnabel Warns of Inflation Risks From Iran War
Isabel Schnabel warned that the Iran war has increased euro zone inflation risks. She signaled that interest rate hikes could begin as early as this June.
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Isabel Schnabel signaled European Central Bank (ECB) rate hikes starting in June to counter inflation risks driven by surging Brent Crude Oil prices. Markets now price in up to four hikes over the next 12 months, potentially raising deposit rates to 3% from 2%. The shift reflects growing concern that energy shocks from the war in Iran are broadening into core prices.
