European Central Bank Executive Board member Schnabel: Even if Iran reaches a peace agreement, the European Central Bank should still raise interest rates in June.

Isabel Schnabel, a member of the European Central Bank's executive board, said that even if the current peace talks with Iran eventually reach an agreement, the ECB should raise interest rates in June. The duration of this conflict has far exceeded expectations, and high energy prices have spread to the overall economy. Over the past year, the European Central Bank has kept interest rates unchanged. However, due to the significant increase in energy prices, inflation rates are well above the policy target of 2%, and discussions on raising interest rates began last month, with several policy officials signaling action. Schnabel said in a media interview, "In my view, considering the size and persistence of the current shock, staying put is no longer feasible. Given the current situation, it is necessary to raise interest rates in June." Despite the US claiming progress in peace talks with Iran, Schnabel, a frontrunner for the ECB presidency next year, believes that the ECB now has no choice. Energy infrastructure has been damaged, and high energy prices are continuing to affect all sectors.