European Central Bank officials say the probability of interest rate hikes is rising, but action should not be taken hastily.

Golden Ten Data, March 10 – European Central Bank Governing Council member Muller stated that the likelihood of a rate hike in the near term has increased, but officials should not react hastily to the Iran war and its impact. He said: "The probability of the next policy rate move is now more inclined towards an increase rather than a decrease. This probability may have risen in the past few weeks." However, he also noted that the European Central Bank should "not make any decisions in haste," adding, "We should first observe whether the current surge in energy prices is only temporary." As the Middle East conflict drives energy prices higher, traders have increased their bets on monetary policy tightening. However, after previously pricing in two rate hikes of 25 basis points each this year, these bets have fallen to less than one following Trump's suggestion that the conflict may soon end. European Central Bank Governing Council member Simkus also warned against acting hastily. He said: "Stay calm and do not overreact, as things are still developing. If the situation persists and the conflict spreads, it will not only impact inflation but also have broader effects on the Middle East and Europe."