ECB's Gediminas Simkus says a June 2026 rate hike is likely but the timing of a second increase remains unclear, citing inflation and geopolitical risks.

ECB's Villeroy signals decisive action on inflation as euro-area expectations surge to 2.7%. Rate hikes possible as early as June 2026.

Market expectations that the European Central Bank will hike interest rates this year have already contributed to tighter financial and lending conditions.