Nagel: If the inflation outlook does not improve, interest rates may need to be raised in June

According to Jin10 Data on May 5th, European Central Bank Managing Director Nagel stated that if the inflation outlook does not significantly improve, a rate hike may be necessary in June. He stated that the failure to tighten monetary policy last week was to assess the impact of the Iran war and emphasized that a cautious wait-and-see attitude does not equate to hesitation. Nagel pointed out that the latest forecast from the European Central Bank and information on the situation in the Middle East will affect decision-making, and stated that the management committee is prepared to take decisive action if necessary. On the same day, Governor Kazimir stated that a rate hike was "almost inevitable", while Governor Studaras warned that the risk of an economic recession was "real".