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ECB's Wunsch: Inflation risk more downward than upward
Published by Global Banking & Finance Review®
Posted on July 3, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on July 3, 2025
1 min readLast updated: January 23, 2026
ECB's Pierre Wunsch indicates that inflation risks are more downward due to falling energy prices and euro strength, suggesting a supportive monetary policy.
BERLIN (Reuters) -The risk of inflation is pointing downwards rather than upwards, Belgium's central bank governor, Pierre Wunsch, told Germany's Handelsblatt newspaper in an interview published on Thursday.
Speaking on the sidelines of a central bank conference in Sintra, the European Central Bank (ECB) governor cited the fall in energy prices, the continuing strength of the euro and uncertain growth prospects as reasons for the assessment.
Interest rates at the neutral level of 1.5%-2% may not be sufficient, Wunsch said, adding that there are arguments in favour of a moderately supportive monetary policy.
(Writing by Friederike HeineEditing by Madeline Chambers)
Pierre Wunsch stated that the risk of inflation is more downward than upward, highlighting the fall in energy prices and the strength of the euro.
Wunsch mentioned that interest rates at the neutral level of 1.5%-2% may not be sufficient for the current economic conditions.
He cited the fall in energy prices, the continuing strength of the euro, and uncertain growth prospects as key factors influencing inflation.
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