European Central Bank committee member Demarco said the European Central Bank may raise interest rates in June to demonstrate its determination to achieve the 2% inflation target.

Member of the European Central Bank's Governing Council Alexander Demarco stated that the ECB may raise interest rates next month to demonstrate its commitment to achieving policy goals. He made the remarks on Friday while attending a Eurogroup meeting in Nicosia, Cyprus, saying that current medium-term inflation expectations are "still quite stable," so there is currently no need for consecutive rounds of follow-up actions. However, the upcoming latest forecasts will show whether this assessment needs to be changed. Demarco said, "We may need to raise interest rates in June. We need to send a signal that we are committed to achieving our medium-term inflation target. This is about maintaining credibility - we cannot be seen as lagging behind the situation." Economists generally believe that a rate hike is imminent to prevent the high inflation caused by the Iran war from evolving into a self-reinforcing spiral of rising prices, leading to a sustained and substantial increase in prices. Even some dovish members of the ECB's Governing Council, such as Yannis Stournaras, have hinted at supporting a rate hike, as consumers and businesses still vividly remember the impact of the previous inflation shock.