ECB's Wunsch Says 2nd Rate Hike Case Weakens as US-Iran Deal Eases Shock
Updated
Updated · Bloomberg · Jun 30
ECB's Wunsch Says 2nd Rate Hike Case Weakens as US-Iran Deal Eases Shock
3 articles · Updated · Bloomberg · Jun 30
Summary
Pierre Wunsch said the case for a second ECB rate hike is no longer as clear, after the US-Iran deal reduced the shock that had fueled concern.
In Sintra, the Belgian Governing Council member said the origin of that shock has “more or less” disappeared, pointing to lower geopolitical pressure on energy and inflation.
His remarks reinforce a broader shift among ECB policymakers toward a July pause, after easing inflation in France, Germany and Italy and calmer commodity markets.
The focus now turns to incoming euro zone inflation data and whether stable energy prices keep the door closed to an immediate move, with September still a possible decision point.