European Central Bank (ECB) Governing Council member Pierre Wunsch emphasizes the risks to consumer prices due to a potential weaker euro if monetary policy diverges from the US. Wunsch suggests the ECB can cut rates by 50 basis points this year but stresses the importance of data-driven decisions. He advocates for a reevaluation of the ECB's policy framework and the role of models in decision-making. Wunsch also warns against the persistence of risks to the inflation outlook and the potential costs of maintaining tight monetary policy for too long.
ECB’s Wunsch warns against calls to expand inflation mandate https://t.co/mhZye8kbuU https://t.co/hpboOaDPFM
💡 ECB’s Wunsch: Possible to Start Easing Despite Uncertain Inflation Outlook - @EconoStream on https://t.co/orvmA6Wqwk Full Story → https://t.co/N6kJoj1WzD
ECB’s Holzmann: If The Time Comes In June, Further Steps Will Certainly Follow - But I See No Reason At All For Us To Cut Key Interest Rates Too Much Too Quickly https://t.co/XWsp71JcVC
ECB'S HOLZMANN: THE FED'S DOLLAR STATUS MAKES IT THE GORILLA IN THE ROOM.
ECB'S HOLZMANN: THE ECB IS INFLUENCED BY THE FED TO A CERTAIN EXTENT.
ECB'S HOLZMANN: I DON'T SEE A REASON TO LOWER RATES TOO MUCH TOO QUICKLY.
ECB’s Holzmann: Don't See Reason To Lower Rates Too Much Too Quickly
ECB’s Wunsch warns that risks to the inflation outlook persist https://t.co/BbpWwQuezu https://t.co/F5QZa77cqK
ECB Governing Council member Pierre Wunsch still sees dangers for consumer prices, including a weaker euro should monetary policy diverge too much from the US https://t.co/TjxzQG9FCs
⚠️ ECB CAN CUT RATES AND SHOULD RETHINK HOW IT SETS POLICY, WUNSCH SAYS Full Story → https://t.co/xmLKavYGaB The European Central Bank can press ahead with interest rate cuts this year but needs to rethink how it forecasts inflation and sets policy based on these projections,…
Wunsch says the quiet part out loud. Europe is quite a bit more interest rate sensitive than the US. ECB's Wunsch: The costs of remaining tight for too long seem to outweigh the cost of premature easing. https://t.co/JEcet7y0eo
ECB'S WUNSCH: THE COSTS OF REMAINING TIGHT FOR TOO LONG SEEM TO OUTWEIGH THE COST OF PREMATURE EASING.
ECB'S WUNSCH: I SEE NEED FOR CRITICAL RE-EVALUATION OF THE ECB'S MODELLING FRAMEWORK AND THE ROLE OF MODELS IN POLICYMAKING.
ECB'S WUNSCH: THERE IS ROOM TO CUT 50 BASIS POINTS, BUT WHEN WILL DEPEND ON THE DATA.
ECB'S WUNSCH: I SEE A PATH FOR INITIATING RATE CUTS THIS YEAR || COSTS OF REMAINING TIGHT FOR TOO LONG SEEM TO OUTWEIGH THE COST OF PREMATURE EASING
ECB'S WUNSCH: I SEE A PATH FOR INITIATING RATE CUTS THIS YEAR.