ECB’s Muller Says Probable Rates Will Rise in Coming Quarters

European Central Bank Governing Council Madis Muller said it’s likely that borrowing costs will have to be increased over the coming quarters due to the inflationary effect of the Iran war.

Policymakers will have to act if energy costs remain high for an extended period, the Estonian official said Tuesday. Based on how long they’ve already been elevated, the ECB’s baseline economic scenario — which envisages 2026 inflation of 2.6% — already looks optimistic, he said.