ECB Governing Council member Kazimir: May raise interest rates early to address inflation pressures

According to Jinshi reports, European Central Bank Governing Council member Kazimir stated that the war in Iran and its impact on inflation may force the European Central Bank to raise interest rates earlier than expected. Although he believes that the current situation is still in a "favorable position," he is concerned that the memory of inflation shocks in the region has lowered the threshold for businesses to raise prices and for consumers to receive wage increases.

He pointed out that upside risks dominate the economic outlook and stated that the European Central Bank is ready to take action at any time. The market currently leans towards the belief that interest rates will be raised in September or later.