The European Central Bank is increasingly expected to raise interest rates in June, Governing Council member Alexander Demarco said on Friday. Such a move would signal the ECB’s determination to keep inflation under control.

“In June we probably might need to hike,” Demarco told Bloomberg.

Inflation has risen to 3%, driven by sustained energy-price pressures from the war in Iran, but Demarco said underlying inflation trends remain relatively stable and medium- to long-term expectations are still aligned with the ECB’s 2% target. He indicated that only limited additional tightening may be required, depending on new economic forecasts.

Demarco cautioned, however, that economic growth faces increasing risks as the geopolitical conflict continues.

ECB officials, including President Christine Lagarde, have emphasized the need for patience and flexibility, balancing the danger of acting too soon against the risk of responding too late.

The ECB plans to continue making decisions on a meeting-by-meeting basis while closely monitoring incoming economic data.

Demarco indicated that number is likely heading higher when fresh projections land, driven largely by sustained elevated energy prices.

Headline inflation currently stands at 3%. The deposit facility rate, held steady at the ECB’s April 30 meeting, remains at 2%. The gap between those two numbers tells you everything about why the Governing Council is getting uncomfortable.

Demarco stressed that the ECB’s approach remains data-driven and will proceed on a meeting-by-meeting basis. He also noted that if the ECB’s adverse scenario materializes, two rate hikes could be necessary rather than just one.