European Central Bank Governing Council member Peter Kazimir has stated that the widespread nature of inflation across the economy will compel the ECB to implement further interest rate increases.

The Governor of Slovakia's central bank believes price pressures will not ease without intervention. He indicated that even a peace agreement between the United States and Iran would not bring inflation back down to the 2% target level overnight. He noted that while the economy is cooling, it remains resilient, providing policymakers with room to act.

"Our mission is not yet complete," Kazimir said in a London interview on Friday. "It is too early to discuss whether policy needs to become restrictive. But given that price pressures are spreading throughout the economy, I would certainly not rule out that possibility."

The European Central Bank raised its deposit rate by 25 basis points to 2.25% on Thursday, becoming the first major central bank to respond to the economic impacts of the war. Informed sources suggest that ECB officials believe the next rate hike could occur as early as July.