European Central Bank (ECB) policymaker Pierre Wunsch told the Financial Times (FT), “I’m not pleading for a pause in April. But we must not “sleepwalk” to cutting rates to 2% without thinking about it.”
Additional quotes
If the data justify a rate cut, we will cut.
If it doesn’t, then we might have to pause.
I think the risks on the downside and upside for inflation are relatively limited.
Inflation in Europe might be the boring part of this year; and it’s not going to be a boring year.
ECB is tasked with fine-tuning policy around a soft landing now.
Market reaction
EUR/USD was last seen trading at 1.0513, up 0.53% on the day, courtesy of the German Conservatives election win.
Source: https://www.fxstreet.com/news/ecbs-wunsch-we-must-not-sleepwalk-to-cutting-rates-to-2-202502240515