Lagarde: The European Central Bank may raise its inflation forecast in June

She stated on Sunday that the March inflation estimate of 2.6% for this year "may be revised," as the situation has changed since that data was released. When asked whether the anticipated revision would prompt the central bank to raise rates on June 11, Lagarde did not elaborate. She said: “The current situation is full of uncertainty, and we need to assess all available data, analyze economic trends for the coming quarters, determine whether policy measures are necessary, and evaluate their medium-term impact. Our medium-term inflation target is 2%.” Economists and investors generally expect the central bank to raise rates by 25 basis points. Several central bank officials have also noted that if lasting peace cannot be achieved between the US and Iran, a rate hike may be difficult to avoid.