European Central Bank Executive Schnabel: If energy shocks intensify, the European Central Bank will need to raise interest rates. On May 8th, according to Golden Jubilee Data, European Central Bank Executive Schnabel stated on Thursday that if the Iran war leaves a more lasting mark on inflation, the European Central Bank will have to raise interest rates. Schnabel stated that "rapidly growing" companies are planning to raise prices, supply chains are facing disruptions, and households are adjusting their expectations. She said that due to the fresh memory of the last inflation shock, the current crisis will not take so long to feel. If the energy price shock expands, monetary policy will need to tighten to curb the risk of a second round effect that threatens medium-term price stability, "Schnabel said in a speech in London." In recent weeks, this risk has increased. "Schnabel also stated that as adverse supply shocks become more frequent, protecting the independence of central banks is crucial so that they can tighten policy when needed. She stated that the European Central Bank has made it clear that it will take necessary measures to bring the current inflation rate of 3% back to the target level.