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- ECB’s Wunsch: We must not “sleepwalk” to cutting rates to 2%
ECB’s Wunsch: We must not “sleepwalk” to cutting rates to 2%
European Central Bank (ECB) policymaker Pierre Wunsch told the Financial Times (FT), “I’m not pleading for a pause in April. But we must not "sleepwalk" to cutting rates to 2% without thinking about it.”
Additional quotes
If the data justify a rate cut, we will cut.
If it doesn't, then we might have to pause.
I think the risks on the downside and upside for inflation are relatively limited.
Inflation in Europe might be the boring part of this year; and it's not going to be a boring year.
ECB is tasked with fine-tuning policy around a soft landing now.
Market reaction
EUR/USD was last seen trading at 1.0513, up 0.53% on the day, courtesy of the German Conservatives election win.
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