Kohl: Closure of the Strait of Hormuz May Lead to an Interest Rate Hike in June

According to Golden Ten Data on May 20, European Central Bank Governing Council member Robert Holzmann stated that if the Strait of Hormuz remains closed, a rate hike in June will be inevitable, and warned that the conflict could significantly drive up inflation in the eurozone. He said that if the 2% inflation target cannot be achieved, the European Central Bank must raise interest rates. Holzmann also mentioned that Austria's economy performed solidly in the first quarter, and if the conflict does not drag on, an annual growth of 0.5% is still possible. He emphasized that there are still three weeks until the June 11 meeting, and the situation may change.