Central Banks
ECB’s Wunsch Sees 4% Rates Possible If Inflation Stays High
- Underlying price pressures to shape policy, official says
- Economists also boost rate predictions, matching market view
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European Central Bank Governing Council member Pierre Wunsch said market bets for interest rates to reach a 4% peak may prove accurate if underlying price pressures remain elevated.
How far borrowing costs must rise “depends very much on the evolution of core inflation,” the Belgian central bank chief said, referring to the measure of consumer-price growth that strips out items such as energy and food.