ECB’s Wunsch says inflation risk points downward

Published 03/07/2025, 14:38
© Reuters.

Investing.com -- Belgium’s central bank governor Pierre Wunsch stated that inflation risk is trending downward rather than upward, according to an interview published in Germany’s Handelsblatt newspaper on Thursday.

Wunsch, who also serves as a European Central Bank (ECB) governor, identified several factors contributing to this assessment during a central bank conference in Sintra. He specifically mentioned falling energy prices, the euro’s continued strength, and uncertain growth prospects.

The central banker suggested that interest rates at the neutral level of 1.5%-2% might not be adequate. Wunsch indicated there are arguments supporting a moderately supportive monetary policy stance.

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