ECB board member Isabel Schnabel said a June rate hike is necessary, warning euro-area inflation has reached 3% and could head toward 4%. The ECB’s own commentary today cautioned against appearing complacent. Eurozone inflation data lands tomorrow as sovereign-debt and fiscal stress build. The EU has set a date to open Ukraine accession talks. Today’s Europe intelligence brief covers the continent’s finance, markets, economy, politics, and defence tape — compiled across German, French, Italian, Spanish, Ukrainian, and Russian sources.
European Central Bank
Schnabel Says a June Rate Hike Is Necessary
ECB board member Isabel Schnabel told Reuters that a rate increase in June “will be necessary” to address inflation driven by the Iran war. She said euro-area inflation has already risen to 3% and could approach 4% by year-end.
Schnabel argued that even if the war ended today, the damage to global supply chains would warrant a monetary response. “Ignoring it is no longer an option,” she said.
