ANZ Research updates its ECB rates call.

"We now expect the European Central Bank (ECB) to hike 25bp in June and September, taking the benchmark deposit facility rate to 2.50%. While the chance of resolution in the Middle East prior to the ECB's next meeting on 11 June has increased in the past week, the situation remains fluid. Even in the case of a deal being struck between the US and Iran, the tail of disruption in energy markets will extend in Europe for many months," ANZ notes.

"Policymakers have guided that the ECB remains data-dependent, but as the magnitude and persistence of the energy shock has moved further away from the baseline scenario for headline inflation laid out in March, there is an increasing focus on managing that at the ECB," ANZ adds.