ECB Officials Say Peace in Iran Isn’t Enough to Fix Energy Shock (opens original article in a new tab)

ECB officials suggest that even with a US-Iran peace deal, they may continue raising interest rates due to persistent energy cost pressures and inflation risks.

• ECB officials indicate that a US-Iran peace deal may not prevent further interest rate hikes despite reduced inflation pressure.
• Energy costs are expected to remain high, with potential for continued inflation above the 2% target due to ongoing economic impacts.
• Analysts predict at least one more quarter-point rate increase in 2023, with uncertainty around the pace of energy price normalization.