Central Banks
ECB May Have to Tighten More in Case of Oil Shock, Wunsch Says
- End to bond reinvestments via PEPP should be discussed soon
- Belgian central bank chief speaks at Frankfurt conference
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The European Central Bank shouldn’t disregard any prospective spike in energy costs and would probably have to respond with higher interest rates, according to Governing Council member Pierre Wunsch.
While the default response in the past would have been to ignore a temporary increase in prices, the situation might be different now after an extended period of above-target inflation, the Belgian central-bank chief said at a panel discussion in Frankfurt.