ECB’s Wunsch Backs a “Mildly Supportive Stance” if Inflation Lags, Growth Steady

17 October 2025

By Marta Vilar – WASHINGTON (Econostream) – European Central Bank Governing Council member Pierre Wunsch said on Friday that he would back a “mildly supportive stance” if inflation stayed below 2% while growth held at potential and the labour market remained solid.

In an interview with Reuters, Wunsch, who heads the Belgian National Bank, said that “[g]iven that the economy is proving resilient, the chance that further rate cuts will be needed is receding,” and thst he was “quite comfortable” with the current interest rate level, but remained “open.”

Wunsch noted that an easing bias persisted, citing the pending impact of tariffs, US dollar weakness, and the potential diversion of cheap Chinese goods.

“I don’t see any major risks for inflation either on the upside or downside,” he said. “But I also don’t get nervous about numbers like 1.8% or 2.2%.”

He said that not every deviation from the 2% target required the same policy reaction, with fundamentals needing to guide decisions.

“If we’re growing at potential, the labor market is healthy, but inflation is still below target, I would support a mildly supportive stance but definitely not aggressive accommodation,” he said.