The ECB is preparing to raise its rates as early as June in the face of 3% inflation.

Inflation is rising again in the eurozone. It reached 3% in April 2026, significantly exceeding the 2% target set by the European Central Bank. Faced with this upward trend, Isabel Schnabel, a member of the ECB's Executive Board, believes that an interest rate hike will be necessary as early as June. The Governor of the Bank of France assures that the institution will not hesitate to act to bring prices back under control. This prospect is emerging as the conflict in the Middle East drags on and tensions persist in energy markets.

A consensus is emerging in Frankfurt

ECB leaders are sending increasingly strong signals in favor of monetary tightening. Even though peace negotiations are underway between the United States and Iran, the likelihood of a rate hike in June remains high. The prolonged shock to energy prices is now impacting the entire economy. Waiting any longer is no longer viable, according to Isabel Schnabel. Other members of the Governing Council, including Peter Kazimir and Joachim Nagel, share this analysis and consider the hike inevitable.

Repercussions on French savings

This decision will have direct consequences for French savers and borrowers. Mortgage interest rates are expected to rise again. Regulated savings products such as the Livret A savings account and French government bonds will also be impacted by this tightening. The ECB intends to prevent inflation from becoming a permanent fixture in the expectations of households and businesses. This remains a risky gamble in a still unstable geopolitical context.