European Central Bank official Stournaras: Raising interest rates in June is possible.

European Central Bank Governing Council member Yannis Stournaras told the Greek media Kathimerini that, due to the ongoing Middle East conflict and the resulting rise in energy prices lasting longer, it is most likely that the central bank will raise interest rates in June. "The most likely outcome is a rate hike in June," Stournaras, who also serves as the Governor of the Bank of Greece, said. "If inflation rates temporarily exceed the target significantly, measures should be balanced," he added, "careful adjustment of monetary policy towards a more restrictive direction can limit the intensity of secondary effects without excessively affecting economic activity." European Central Bank Governing Council member and Governor of the Bank of Latvia Martins Kazaks also told Kathimerini that the possibility of an interest rate hike is high as the duration of high energy prices due to war is longer than expected.