European Central Bank officials, including Governing Council members Ante Zigman, Isabel Schnabel, Philip Lane, Jose Luis Escriva, and Vice President Boris Vujcic, stressed the need to control inflation and indicated that more interest rate increases may be necessary to reach the ECB's 2% inflation target [1, 2, 3, 4, 5, 6, 7].

The ECB raised interest rates by 25 basis points on June 11, 2026, marking its first hike since 2023, and is now assessing the need for additional increases in the coming months [3, 4, 5, 6, 7]. Schnabel, one of the most hawkish officials, said, “從目前來看，我們將需要繼續提高利率，以利在中期讓通膨回到我們2%的目標水準” (From the current perspective, we will need to continue raising rates to bring inflation back to the 2% target over the medium term) [2].

Inflation pressures are expected to remain above the target for a prolonged period, possibly until 2027. Core inflation has risen, driven partly by energy costs spilling over into sectors such as services, transport, and food [3, 4, 5, 6, 7]. Jose Luis Escriva said, “We are not yet sure how long oil supply disruptions will last, so we must remain flexible and take decisions step by step” [3].

Oil prices have recently declined due to geopolitical events, including the reopening of the Strait of Hormuz and US-Iran negotiations toward peace, easing inflation pressures somewhat. Ante Zigman noted, “Geopolitical developments related to the reopening of the Strait of Hormuz have caused oil prices to fall, which will positively affect inflation” [1, 3, 8, 6, 7]. However, uncertainty remains over the durability of this trend.

ECB President Christine Lagarde said there is no need for a stronger policy response at present despite geopolitical risks, emphasizing a data-driven, flexible approach. Lagarde stated, “Currently, there is no need for stronger measures as inflation is expected to return to target in the medium term. We will make decisions stepwise and based on data” [8].

Boris Vujcic described the rate hike decision as "prudent," highlighting that wage growth does not yet show second-round inflation effects [5]. European economic growth remains fragile amid tightening monetary policy and geopolitical uncertainties [1, 3, 8, 6, 7].

Market expectations adjusted after Lagarde's comments, lowering expected cumulative ECB rate hikes this year from 37 to 33 basis points, with the current deposit rate at 2.5% [8].

Following speeches on June 23 and 24, ECB officials continue to warn that inflation will remain elevated over the longer term, and the bank is prepared to tighten policy further as needed. The ECB will closely monitor data to decide on any future rate moves.