world-economy

ECB Officials Signal June Rate Action as Energy Shock Persists

European Central Bank policymakers indicated Wednesday they may raise interest rates at their June meeting. The signals come amid persistent energy price pressures stemming from Middle East geopolitical tensions. Bundesbank President Joachim Nagel said the ECB remains "highly vigilant" to inflation risks and will act as needed to prevent energy costs from spreading through the broader economy. Fellow Governing Council member Christodoulos Patsalides told MNI that heightened inflation threats point toward a June rate increase. ECB official Francois Villeroy de Galhau acknowledged the energy supply shock has proven more durable than baseline forecasts, pushing policymakers away from their original economic scenarios. The remarks suggest the central bank is moving toward tightening monetary policy to combat price pressures that have resisted recent policy adjustments.