The European Central Bank may need to raise interest rates further according to ECB Governing Council member Pierre Wunsch, who spoke on Saturday in a radio interview.
Wunsch said there are signs that price pressures are dissipating, but the ECB’s 2% target rate won’t be hit before 2025. Given the persistence of inflation:
- “I’m inclined to say we maybe need to do a little bit more”
- The “idea that we’ll have to come to a pause at a certain point can’t be excluded” he said,. but its too early to talk about stopping hiking completely
ECB Governing Council member Pierre Wunsch is at the less dovish end of the ECB spectrum.