ECB's Wunsch Says Another Rate Increase May Be Needed
The policymaker cited inflation nearing 4%, while economists expect a December increase and officials point to energy prices as the main pressure.
Key takeaways
- Wunsch said the ECB may need to raise rates again as inflation nears 4%.
- Economists expect a 25-basis-point rate increase in December, according to Bloomberg HT.
European Central Bank policymaker Pierre Wunsch said another interest-rate increase may be needed as inflation nears 4%, according to Bloomberg HT.
Wunsch, who heads Belgium’s central bank, said energy-market uncertainty made the timing difficult to pin down. He said it mattered little whether a move came at the October or December meeting, as decisions would depend on data.
Economists expect the ECB to raise its deposit rate by 25 basis points in December, to 2.75%, Bloomberg HT reported. Officials said energy prices were driving inflation pressure, with second-round effects such as wage increases not yet evident. ECB President Christine Lagarde warned that rising bond yields could weigh on economic activity more than expected.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
