Swiss Baosheng: The European Central Bank may raise interest rates in June under pressure from itself.

UBS Switzerland believes that the European Central Bank is likely to raise its main policy interest rate by 25 basis points at its June meeting. David Kohl, chief economist at UBS Switzerland, said in a report, "We believe that the European Central Bank is signaling readiness to address the risks of rising inflation, which puts immense pressure on itself and forces it to take action at the next meeting." Kohl said that even if tensions in the Middle East are eased, inflationary pressures will persist for some time and may spread when relief spending begins to take effect. He said that if the conflict escalates, further increases in energy prices will push the inflation rate above the current 3%, forcing the European Central Bank to raise rates. However, Kohl expects that after a possible rate hike in June, interest rates will remain unchanged.