Central Banks
Bets on ECB Cuts Risk Prompting Hike Instead, Wunsch Says
- Rates should stay unchanged at December, January meetings
- Belgian central bank chief comments in interview in Frankfurt
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The European Central Bank may have to raise borrowing costs again if investor bets on monetary loosening undermine the institution’s policy stance, Governing Council member Pierre Wunsch said.
Markets are taking an “optimistic” view by discounting the possibility of further hikes and expecting the first reduction of the ECB’s deposit rate from its current 4% level as soon as April, the Belgian central-bank chief said in an interview in Frankfurt.