Ulo Kaasik, the Estonian central‑bank governor and ECB Governing Council member, told reporters in Sintra that the bloc may need to tighten policy again after the Iran‑related oil shock. He said markets already price in another move and that a further increase would help steer inflation back toward the 2% target.

Kaasik emphasized that at least one more rate hike is a reasonable expectation given the recent energy price surge. The comment follows a series of ECB decisions that have already lifted rates to historic levels, aiming to curb price pressures that have proven stubborn despite earlier cuts.

Investors are likely to adjust bond yields and currency positions as the prospect of another tightening looms. The ECB’s stance suggests policy will stay aggressive until inflation consistently aligns with its goal, reinforcing a higher‑for‑longer rate environment across the euro area.