ECB Must Weigh Growth Impact on Rate Decision

European Central Bank Vice President Luis de Guindos stated that the ECB must carefully consider the economic slowdown caused by the conflict in Iran when making its interest rate decision in June. The ongoing geopolitical tensions are exerting significant pressure on the economy, and this factor will be crucial in determining the future path of monetary policy. The bank's assessment of these growth headwinds will likely influence whether further rate hikes are appropriate.