Economists and markets expect ECB to hold rates on April 30, with a possible June increase as energy-driven inflation clouds the outlook

Why is the ECB expected to wait until June instead of raising rates in April?

ECB officials have said they want more evidence on whether the energy shock will create broader, longer-lasting inflation pressures. Several sources say updated staff projections available for the June meeting should provide a clearer basis for any move Yahoo! Finance,Reuters,Bloomberg Business.

What is driving the inflation concern?

Sources point to the Middle East war and related disruption to energy markets, which lifted oil and gas prices and pushed inflation above the ECB's 2% target. That has also weighed on business and consumer sentiment in the euro area Yahoo! Finance,RTE.ie,POLITICO.

What is still unresolved after a possible June hike?

Economists have not reached a clear consensus on whether one June increase would be enough or whether more tightening would follow. The answer depends on how persistent energy-driven inflation proves to be and how much damage higher prices do to euro-zone growth Yahoo! Finance,Reuters,FXStreet.