European Central Bank Governing Council member Joachim Nagel says the ECB is prepared to increase interest rates again at its July meeting if needed. Nagel links the decision to how disruptions tied to the war in the Middle East affect the euro area outlook, particularly inflation and the broader economic environment. He indicates the ECB is considering another step even if it has already tightened policy at the prior meeting, framing it as a conditional move rather than a commitment to hike automatically. The statement underscores that the ECB’s next decision will depend on incoming data and the magnitude of any spillovers from the conflict, including impacts on prices, demand, and expectations. The remarks reflect the ECB’s ongoing approach of adjusting policy based on prevailing risks to price stability, with officials assessing whether external shocks create additional inflation pressure that would require further rate increases. No specific rate or timetable change beyond the July meeting is provided in the reports.