Berenberg: The European Central Bank is likely to keep its key interest rates unchanged next week

Golden Ten Data reported on April 23 that Berenberg Bank stated the Iran war is intensifying inflationary pressures in the Eurozone, with the European Central Bank closely monitoring the situation. PMI data show that in April, both input costs and output prices recorded their highest increases in more than three years. The extent to which these costs are passed on to consumers varies, with the situation in Germany being more pronounced than in France. At next week's meeting, the European Central Bank may keep its key interest rate unchanged. However, if the conflict escalates further and leads to high input costs being passed on directly or indirectly to consumer prices, the pressure on the European Central Bank to raise interest rates will increase.