Institution: The European Central Bank may raise interest rates first, while facing stagflation dilemma.

Claus Vistesen of Pantheon Macroeconomics stated in a report that the European Central Bank may raise interest rates in the coming months. The overall inflation rate in the Eurozone jumped to 2.5% in March. Vistesen predicts that this data will further increase in the short term, stabilizing between 2.5% and 3.0% this year and next. Pantheon expects the central bank to raise interest rates by 25 basis points in June and July respectively. However, with the country's economy facing difficulties, a rate cut is still a possible option. "We expect the central bank to try to strike a delicate balance, adjusting the policy rate to the upper end of the neutral rate range, at 2.5%, in order to balance the risks of rising inflation and the risks of economic downturn."