ECB’s Wunsch Believes Current Policy Is Suitable, Does Not Exclude Possibility of a Rate Increase as Next Step

ECB's Wunsch: Current Policy Stance Suitable, Rate Increase Not Ruled Out

Pierre Wunsch, a member of the European Central Bank's Governing Council and head of the National Bank of Belgium, stated on Monday that the ECB's present approach to interest rates remains fitting. He also indicated that a future rate hike is possible, as inflation within the Eurozone draws closer to the 2% target.

In an interview with the Belgian business and finance magazine Trends, Wunsch was asked if inflation would become a non-issue by 2026. He replied positively, saying, "Yes, and that's encouraging news." The conversation, initially published on December 19 and updated today, highlighted that Eurozone inflation is nearing the desired 2% level. Wunsch also referenced comments from Executive Board member Isabel Schnabel on the matter.