ECB’s Wunsch says central bank may cut rates when the dynamics turn
European Central Bank (ECB) policymaker and the head of Belgium's central bank, Pierre Wunsch, said on Friday that the central bank may cut the interest rates when the dynamics turn.
Key quotes
ECB may cut rates when the dynamics turn.
If data is not going in right direction, I would plead for second hike in July.
If we see higher services inflation, we may want to hike another 25 bps to be on safe side.
Calls for conditional guidance on rates.
If data is ambiguous, I don’t see a need to rush.
Market reaction
At the time of writing, the EUR/USD pair is down 0.21% on the day to trade at 1.1430.
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