The European Central Bank's Kazaks does not oppose market bets on two rate hikes starting in June this year.

Martins Kazaks, a member of the European Central Bank's Management Committee, does not oppose market bets on interest rates rising twice in 2026 and beginning to hike rates in June. The Latvian official told CNBC on Wednesday that the war in Iran is pushing up inflation and dragging down economic growth. He said that if a second round of price effects occurs in addition to rising energy costs, the European Central Bank will have to take action. "For the euro area, the markets are expecting two rate hikes starting in June," Kazaks said. "I am currently not against this. Let's see how the situation develops."