European Central Bank (ECB) board member Isabel Schnabel says the ECB should raise interest rates in June even if peace talks with Iran result in a deal. Schnabel argues that the Iran conflict has lasted far longer than initially expected, meaning its effects on the European economy are still present. She also points to elevated energy prices as a key factor, saying higher energy costs are spilling into the wider economy.
Both outlets report that Schnabel’s comments come amid an environment where the ECB has kept rates on hold for an extended period. The proposal is therefore framed as a decision to tighten policy sooner than would be implied by hopes that an Iran agreement could ease market pressures. The reporting emphasizes that, in Schnabel’s view, the potential benefits of a diplomatic breakthrough would not automatically outweigh the ongoing economic and inflation-related impact of energy prices and the protracted nature of the conflict.
No details are provided in the sources about the status, timetable, or terms of the Iran negotiations.
