ECB’s Wunsch Says Rates Should Fall, But Warns on Inflation

The European Central Bank should be able to continue to ease policy, but must be mindful of consumer-price growth, according to Governing Council member Pierre Wunsch.

“In our base scenario, if our forecast becomes reality, we should be able to reduce interest rates further,” he told Belgium’s VRT in a television interview on Sunday. “But I see a small risk that it’ll happen more slowly if services inflation remains elevated.”