According to informed sources, if the spillover effects of the Iran conflict drive inflation significantly above target, European Central Bank policymakers are prepared to raise interest rates as early as their next meeting. The sources indicated that while no decision has been finalized and a later date might be more appropriate, factors such as the risk of "second-round effects"—where rising energy costs trigger broader increases in wages and prices—could necessitate a rate hike at the April 29-30 meeting. The individuals spoke on condition of anonymity due to the confidential nature of the discussions. The April decision will not be accompanied by updated economic projections, which may make some officials hesitant to take policy action prematurely. Some insiders suggested that June could be a more suitable timing for an interest rate increase. A spokesperson for the European Central Bank declined to comment. On Thursday, the ECB left its deposit rate unchanged at 2%, as widely expected. President Christine Lagarde stated that she and her colleagues are fully equipped to address the growing risks stemming from the Middle East conflict.