Emmanuel Moulin, the incoming governor of the European Central Bank (ECB) and nominee from the Bank of France, expressed caution regarding potential interest rate changes at the ECB's upcoming June meeting. He stated that it is too early to commit to any specific actions and emphasized the necessity for policymakers to exercise patience. Moulin highlighted the importance of closely monitoring inflation dynamics throughout the eurozone, particularly the risk of second-round effects, where initial price increases could lead to broader wage growth and increased domestic demand. Such dynamics could entrench higher prices within the economy, making it crucial for the ECB to gather more comprehensive economic data before making decisions. Currently, the market anticipates an 85% likelihood of a rate hike in June. However, Moulin noted that this situation could change significantly if external factors, such as the reopening of the Strait of Hormuz, were to impact oil prices before the meeting. Policymakers are thus urged to remain vigilant and responsive to evolving economic conditions.