ECB board member calls for interest rate hike despite Iran peace talks

European Central Bank Executive Board member Isabel Schnabel has stated that the ECB should raise interest rates in June, even if peace negotiations with Iran result in an agreement. She warned that the prolonged conflict and high energy prices are already affecting the eurozone economy.

European Central Bank (ECB) Executive Board member [Isabel Schnabel](/politicians/isabel-schnabel) has called on the central bank to tighten its monetary policy in June, regardless of the outcome of ongoing peace negotiations involving Iran. Speaking on the matter, Schnabel argued that the conflict has lasted longer than initially anticipated and that its economic consequences are now being felt across the entire eurozone.

Schnabel highlighted that elevated energy prices stemming from the prolonged geopolitical tensions are placing increasing pressure on the eurozone's economy. In her view, these circumstances justify a rate increase even if diplomatic efforts succeed in producing a peace deal before the ECB's scheduled June meeting.

The ECB board member's comments signal a hawkish stance within the central bank at a time when policymakers across Europe are weighing the risks of inflation against the threat of economic slowdown. A rate hike in June would represent a significant shift in the ECB's approach to managing price stability amid ongoing global uncertainty.