ECB’s Wunsch Says Economy May Need Some Support From Rates

European Central Bank Governing Council member Pierre Wunsch said the euro-zone economy may need interest rates at “mildly supportive” levels to ensure inflation doesn’t fall below target after a series of shocks.

With US tariffs denting confidence, strengthening the euro and sending energy costs lower, price pressures will probably turn out weaker than previously anticipated, the Belgian central-bank chief said Tuesday in an interview. Market bets for a deposit rate of just below 2% at year-end are therefore “reasonable,” he said.