March 03, 2023 00:00 GMT
Wunsch: Rates May Need To Hit 4%, Core Inflation Key
EM BulletHomepageEmerging Markets NewsEuropean Central Bank (ECB) Market NewsBulletMarketsFixed Income NewsForeign Exchange News
BBG has covered comments made by ECB Governing Council Member Pierre Wunsch, who suggested that a peak benchmark interest rate of 4% (in line with market pricing) may be required if inflationary impulses remain elevated.
- Wunsch pointed to “the evolution of core inflation” as the key driver re: the ECB’s terminal rate.
- He went on to stress that “If we don’t get clear signals that core inflation is going down, we will have to do more,” which means that “looking at rates of 4% would not be excluded,”
- Still, he was cautious when it came to any guidance, flagging a need for a data-driven mindset focused on core inflation dynamics.