---
title: "ECB Governing Council Member: Cannot Rule Out Possibility of April Rate Hike!"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281216151.md"
description: "If the Iran conflict continues to push up oil and gas prices, the central bank cannot rule out the possibility of raising interest rates at its April policy meeting, said European Central Bank Governing Council member Madis Muller on Tuesday. This statement has further tightened market expectations for the ECB's monetary policy path, with the market currently pricing in up to three 25 basis point rate hikes this year"
datetime: "2026-03-31T16:00:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281216151.md)
  - [en](https://longbridge.com/en/news/281216151.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281216151.md)
---

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# ECB Governing Council Member: Cannot Rule Out Possibility of April Rate Hike!

Amid escalating tensions in the Middle East and rising energy prices, discussions about interest rate hikes are intensifying within the European Central Bank (ECB).

Madis Muller, a member of the ECB's Governing Council, stated on Tuesday that if the conflict in Iran continues to drive up oil and gas prices, the possibility of raising interest rates at the April policy meeting cannot be ruled out.

This statement has led to tighter market expectations regarding the ECB's monetary policy trajectory, with traders currently pricing in up to three 25 basis point rate hikes by the central bank this year.

The next ECB monetary policy meeting is scheduled for April 30th. While most members are inclined to wait and assess the scale of the inflation shock, Muller's remarks indicate that some officials are leaning towards faster action, signaling emerging policy divergence.

## **Interest Rate Hike Window Opens, Energy Prices are the Key Variable**

Muller said in an interview in Tallinn, Estonia on Tuesday, "It is difficult to judge the extent to which the situation will evolve by the end of April. If energy prices remain high for a prolonged period, we indeed cannot rule out adjusting interest rates in April."

The statement from the Estonian official brings the discussion of a potential April rate hike from the realm of market expectations into the purview of policymakers. Tensions in the Middle East tightening energy supplies in the Gulf region are the core external variables prompting the ECB to re-examine its pace of rate hikes.

## **Wages and Labor Market: A Window into Inflation Spillover**

Muller stated that he will closely monitor wage trends and labor market conditions as key indicators to determine if inflationary pressures are spreading broadly.

He also pointed out that the transmission channels of rising energy prices vary across different sectors, with services like airlines, which heavily rely on energy, being particularly and directly impacted.

"To maintain purchasing power, people will have to push for larger wage increases," he said. He also emphasized that policymakers must consider long-term market and consumer inflation expectations to prevent them from becoming unanchored.

## **Widening ECB Internal Divergence, Market Has Already Priced It In**

Although most ECB officials currently still prefer to wait for more data and assess the actual impact of the Middle East conflict on European inflation, some members have begun to lean towards action.

Muller's statement further validates the divergence within the Governing Council regarding policy pace.

Traders have already priced in up to three 25 basis point rate hikes by the ECB this year, reflecting heightened market vigilance regarding the persistence of energy-driven inflation.

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