Kocher: Strait of Hormuz closure may lead to interest rate hike in June

According to Jin10 Data on May 20th, European Central Bank Managing Director Kocher stated that if the Strait of Hormuz continues to close, a rate hike in June will be inevitable, and warned that the conflict could significantly push up inflation in the eurozone. He said that if the 2% inflation target cannot be achieved, the European Central Bank must raise interest rates. Kocher also mentioned that the Austrian economy performed steadily in the first quarter, and if the conflict does not persist, it is still possible for a full year growth of 0.5%. He emphasized that there are still three weeks left until the June 11th meeting, and the situation may change.