ECB’s Wunsch Says Maybe Too Early to Get Hopes Up on Rates

The European Central Bank may not lower borrowing costs as quickly as some anticipate, according to Governing Council member Pierre Wunsch.

“Financial markets are pricing in a swift return to price stability: inflation expectations remain anchored and long-term interest rates are down again as investors expect central banks to start easing soon after an immaculate disinflation,” he wrote in an article in Eurofi magazine. “That being said, it may be too early to get our hopes up.”