Lagarde: The European Central Bank may raise inflation expectations in June.

European Central Bank President Lagarde said that at the next policy meeting, the central bank is likely to raise its inflation expectations. She stated on Sunday that the March inflation forecast of 2.6% for this year "may need to be adjusted," as the situation has changed since the data was released. When asked whether the expected adjustment would lead the central bank to raise interest rates on June 11, Lagarde did not provide specifics. She said, "The current situation is full of uncertainty. We need to consider all available data, assess the economic trends for the next few quarters, determine if policy measures are necessary, and evaluate their medium-term impact. Our medium-term inflation target is 2%." Economists and investors generally expect the central bank to raise rates by 25 basis points. Several central bank officials also believe that if the US and Iran fail to reach a lasting peace agreement, a rate hike may be difficult to avoid.