ECB officials agree: We need to act quickly to tame inflation

EUR/JPY traded about 0.15% higher to near 185.00 in European trade as markets price a higher probability of ECB tightening. ECB officials signaled rising inflationary pressures and the need to act quickly, with comments from Yannis Stournaras and Martin Kocher pointing to a possible rate increase at the June meeting unless US‑Iran tensions ease. Geopolitical risk — notably the potential closure of the Strait of Hormuz affecting ~20% of global energy supply — was highlighted as a secondary inflationary channel. The yen was softer ahead of BOJ Governor Kazuo Ueda’s speech and Tokyo CPI data later this week. Overall, hawkish ECB rhetoric and geopolitical uncertainty are supporting the euro versus the yen, while BoJ signals and upcoming Japan CPI could add near‑term volatility.