ECB policymaker Isabel Schnabel wants to raise key interest rate in June

"Given the size and persistence of the ongoing shock, I no longer see a way through this. Based on what I see today, I think a rate hike is needed in June," Schnabel said in an interview with Reuters.

She points, among other things, to major damage to energy infrastructure and global value chains.

An increase in the ECB's key interest rate by 0.25 percentage points in June is also priced into markets.