In an interview with Reuters, Belgian ECB Governing Council member Pierre Wunsch emphasized the importance of patience regarding monetary policy adjustments, pointing to strong employment figures and rising real wages as signals of economic resilience.
Wunsch remarked that with the economy likely headed for a “soft landing,” there is “no urgency in further accelerating the easing of monetary policy.”
Wunsch downplayed temporary inflation undershooting, and warned against “overdramatize such an event”. He added, “Being a bit below 2% is not a big event if the medium term continues to point to 2%,” especially if driven by a favorable terms of trade shock.
Wunsch further cautioned against making premature decisions ahead of December’s ECB meeting, noting that several high-stakes developments are expected in the coming weeks.
“We’ll have so much information until then, including two more inflation readings and new staff projections,” he said. “There will be a U.S. election, and we also need to see how the conflict in the Middle East develops, so discussing precise levels is premature.”
