The European Central Bank is reportedly preparing to raise interest rates as early as the April meeting.

MaticHoleFiller · 2026-03-20T17:53:24+00:00

Informed sources reveal that if the Iran conflict leads to a sharp rise in inflation, the European Central Bank may consider a rate hike at its April meeting. While no decision has been finalized, some officials believe June would be more appropriate. The central bank is currently maintaining deposit rates unchanged.

MaticHoleFiller

2026-03-20 17:53:24

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Sources reveal that if the ripple effects of the Iran war cause inflation to far exceed the target, European Central Bank policymakers are prepared to raise interest rates as early as the next meeting.

Sources say that although no decision has been made yet and a later date might be more appropriate, due to factors such as the “second-round effect” (where rising energy prices trigger widespread increases in wages and prices), it may be necessary to raise rates at the April 29-30 meeting. Because the discussions are confidential, these individuals requested anonymity.

The April decision will not include updated economic forecasts, which may cause some officials to be hesitant to take policy action hastily. Some sources suggest June might be a more suitable time to raise rates.

A ECB spokesperson declined to comment.

On Thursday, the ECB kept the deposit rate unchanged at 2%, as expected. President Lagarde stated that she and her colleagues are fully capable of responding to the increasing risks posed by the Middle East conflict.

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