By Martin Wolburg At its meeting on 11 June, the ECB is highly likely to raise its key interest rates by 25 basis points, in line with its recent hawkish communication. Beyond that date, the monetary policy outlook becomes more complex, as the Governing Council must balance persistently high inflation with weakening economic activity. Inflation is rising, inflation expectations have rebounded slightly and the fall in real interest rates argues…

Report by Link Securities Isabel Schnabel, a German member of the European Central Bank (ECB) Executive Board, stated that the ECB should raise interest rates in June, even if peace negotiations with Iran result in an agreement. It should be noted that the ECB has kept its key interest rates unchanged for a year, but that inflation in the Eurozone stood at 3% in April, above the ECB’s 2% target….

CdM | The European Central Bank (ECB) has kept interest rates at 2% and acknowledges that “upside risks to inflation and downside risks to growth have intensified”. However, it states that “the Governing Council remains well positioned to deal with the current uncertainty”. As stated in the press release following the April meeting, the eurozone entered this period of sharp rises in energy prices with inflation close to the 2%…