Alfred Kammer, director of the International Monetary Fund's European Department, has recommended that the European Central Bank (ECM) should raise its key interest rate twice this year to combat an energy-driven inflation surge in 2026, but then reverse these moves in 2027. Kammer suggested that if the ECB wants to maintain a neutral monetary stance, it may need to increase the ⁠nominal policy rate. The ECB's main interest rate is currently set at 2%. Kammer noted that the problem was more of a shortage of supply than a rise in demand, which would have been easier to deal with.