ECB Governing Council member WUNSCH said a US‑Iran peace deal reached before next week’s ECB meeting would be part of the discussion but would not necessarily weaken the case for a rate hike. He flagged uncertainty over the durability and credibility of any deal and signalled support for a 25bp increase. If the conflict remains unresolved, discussions ahead of the June 11 meeting will be fairly straightforward; a peace deal might make discussion slightly less straightforward, though the case for

ECB Governing Council member WUNSCH said a US‑Iran peace deal reached before next week’s ECB meeting would be part of the discussion but would not necessarily weaken the case for a rate hike. He flagged uncertainty over the durability and credibility of any deal and signalled support for a 25bp increase. If the conflict remains unresolved, discussions ahead of the June 11 meeting will be fairly straightforward; a peace deal might make discussion slightly less straightforward, though the case for a hike could still remain, albeit less strong. He added that policymakers cannot leave markets to shoulder all adjustments and need to show a stance.