The European Central Bank’s expected rate increase in June is now doubtful after Christine Lagarde signaled a tightening stance two weeks ago.

Recent data shows oil prices have failed to surge, limiting the anticipated spillover into broader inflation. Without a clear rise in energy costs, the pressure on the euro zone’s 20‑nation economy has lessened.

The ECB’s officials appear to be reassessing their outlook. A stagnant economic backdrop combined with muted price growth suggests the bank may delay or moderate the June hike.

Investors and markets watch closely as the central bank’s policy direction hinges on evolving inflation dynamics and the resilience of euro‑area growth.