By Marta Vilar – SINTRA, Portugal (Econostream) – European Central Bank Governing Council member Pierre Wunsch said on Tuesday that the ECB should move quickly if policymakers conclude another interest rate increase is needed, adding that this did not imply a move in July.
On the sidelines of the ECB Forum on Central Banking in Sintra, Portugal, Wunsch told Bloomberg TV that the original inflation shock had “more or less” disappeared following the US-Iran agreement.
“We might need another hike — that’s, of course, what the market is pricing — but not as much as we thought in June,” he said. “I would rather, if we believe we need another one, move quickly. It doesn’t mean July.”
Wunsch said there would be “some” second-round inflation effects, but added that he was not particularly concerned about them.
“We know inflation is going to be above target for a number of quarters,” he said. “So if we need to do another hike, if the data show that it’s required, then I would not wait for too long. But I’m not committing to any specific date.”
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