The European Central Bank is heading for an interest-rate increase next month unless a sustainable peace deal between the US and Iran can be found, according to Governing Council member Martin Kocher.

The data highlight the conundrum for the ECB. Price pressures are of clear concern, but weak activity data question whether the ECB needs to hike rates as much as markets have…

HSBC warns central banks will raise rates amid US-Iran supply shocks, with ECB and BoE hikes expected in June-July 2026 as oil tops $126 per barrel.