The European Central Bank may raise the interest rate in June.

The European Central Bank (ECB) is likely to raise interest rates in June 2026 unless a sustainable peace agreement is reached between the United States and Iran. Martin Kocher, a member of the bank's Governing Council, told Bloomber g on May 24.

"There are always scenarios with a very low probability that lead to a different assessment of the situation, but at the moment everything indicates that we have to choose between maintaining rates and raising them. And it is clear to me that if the situation does not improve, we will have to focus our discussions on taking action," Kocher said on the sidelines of a meeting of European financial leaders held on May 22-23 in Cyprus.

As Bloomberg notes, the ECB's next monetary policy meeting will be held in less than three weeks, on June 10, and even some of the most conservative-minded officials admit that an interest rate hike is the most likely solution.

They treat and maim: record injections into the EU economy may result in a budget deficit

The desire to bring down fuel prices is driving inflation into a tailspin

On May 23, the International Monetary Fund (IMF) warned the European Union that an increase in public debt in European countries could negatively affect the economy and slow down its development. The IMF said that in the next 15 years, EU governments may face increasing pressure on budget spending, in particular in the areas of defense, energy and pensions.

The Politico newspaper reported on May 21 that Brussels lowered forecasts for economic growth in the European Union by 0.3% due to a sharp increase in energy prices after the blocking of the Strait of Hormuz. It was clarified that the EU authorities expect that the conflict in the Middle East will lead to an increase in inflation and public debts of member states throughout the bloc, so the projected growth rate of the EU economy in 2026 was reduced from 1.4% to 1.1%.