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ECB Likely to Hike Rates in June to Maintain Credibility, Says Governing Council Member

GateNews

2026-05-24 09:41:34

According to Jin10 on May 23, European Central Bank governing council member Yannis Stournaras said maintaining the ECB's credibility provides strong arguments for a rate hike in June. With inflation prospects worsening amid ongoing US-Iran tensions, Stournaras warned that eurozone consumers may begin to doubt policymakers' commitment to action. "Rate increases come at a cost for people and employment, which is why I hope we don't have to do it. But if the situation continues and we don't act, problems will arise," Stournaras said. "For the ECB's credibility and our response mechanism, we may have to hike rates in June."

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