Central Banks
ECB’s Wunsch Says Mild Slowdown Might Mean More Rate Hiking
- Belgian central banker makes remarks in speech in Geneva
- ECB has raised rates by 200 basis points since July meeting
This article is for subscribers only.
The European Central Bank may need to raise interest rates more than investors expect if the euro zone faces only a mild downturn, according to Governing Council member Pierre Wunsch.
“Our monetary-policy response will ultimately depend on the severity of the coming economy slowdown,” the Belgian central-bank chief told an audience in Geneva. “If the slowdown is shallow and accompanied by a further rise in inflation -- and inflation expectations -- real interest rates will have to move above market consensus” of 3%.