According to ECB Governing Council member Martin Kocher, why will inflation in the euro area remain elevated despite the US-Iran deal?

Kocher stated that although the interim agreement may lead to declining energy prices, 'prices will stay higher for some time' due to an ongoing energy price shock from the Middle East war, and that inflation pressures are now reinforced by higher selling costs and entrenched wage demands — factors which mean price gains will not return to the ECB’s 2% target until 2028.

What did IMF chief Kristalina Georgieva say about the ECB’s recent rate hike and the need for further action?

Georgieva called the ECB’s recent quarter-point deposit rate hike to 2.25% 'the right decision' because 'inflation has already gone up', and while she acknowledged 'we are in a better place today than we were a week ago, but we’re not out of the woods', she urged the ECB to 'be determined to follow the data and be prepared to act if necessary' — adding that the IMF believes at least one more rate hike is needed to contain the inflation shock.

ECB's Kocher Says Inflation to Persist Despite Iran Deal

Jun 18, 2026

ECB official Martin Kocher warns inflation will remain high in the euro area due to energy price shocks, despite a new Middle East deal restoring oil shipments. Forecasts suggest price pressures may last until 2028.

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