By Marta Vilar – SINTRA, Portugal (Econostream) – European Central Bank Governing Council member Pierre Wunsch said on Monday that were the economy not to recover as expected, the ECB might have to provide more monetary accommodation. 

In an interview with CNBC on the sidelines of the ECB Forum on Central Banking 2025 in Sintra, Portugal, Wunsch, who heads the National Bank of Belgium, said that if the economy recovers as expected in the projections, ‘then it’s an ideal scenario’, but that otherwise, ‘then we may have to be a bit more supportive.’ 

There was a ‘broad consensus’ within the ECB that inflation was now close to target and the job was almost done, he said. 

‘If we would have to do more, it would probably be on the downside, a further cut’, he said. ‘I am not pleading for one, but I think if there’s any discussion, it is more on that direction.’ 

Helping economic growth being close to its potential would be ‘great’, he said.  

The ECB could look through the undershoot of inflation in some quarters next year as long as the economy was to recover, he said. 

‘We have only one objective, which is inflation, but if growth would remain on the downside, then there might be room for a little bit more action’, he said. 

Wunsch explained that, after a period when he was concerned about persistent inflation, the ECB’s projections had started to materialise and wage pressures had eased as anticipated. 

‘It adds to the comfort we have that we are moving in the right direction’, he added. 

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