European Central Bank Executive Board member Isabel Schnabel stated there is no need for the ECB to rush into an interest rate hike decision.

Speaking during the International Monetary Fund's Spring Meetings in Washington, Schnabel noted that the ECB is currently in a "relatively favorable position," with its present policy stance neither stimulating nor restricting demand.

"This means we have time to analyze the nature of this shock," she said. "There is no need for us to act hastily."

The ECB's Governing Council is scheduled to make its next policy decision in two weeks, as officials assess the repercussions of the Middle East conflict. Although surging oil and gas prices have driven up inflation and weakened economic confidence, policymakers do not believe the impact has been severe enough to warrant immediate action.

Schnabel described the current shock as "particularly tricky" because memories of inflation running above target levels remain fresh. "This could mean inflation expectations are more fragile," she added.

"On the other hand, we also know that the pass-through effect largely depends on the strength of aggregate demand," she remarked. "We must weigh our policy decisions very carefully and observe which force ultimately prevails."