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ECB’s Wunsch: US-Iran deal confirmation before June meeting won’t derail interest rate hike hopes
European Central Bank (ECB) policymaker and the head of Belgium’s central bank, Pierre Wunsch, said in an interview with Financial Times (FT), released on Wednesday, that the likelihood of central bank tightening monetary conditions in the policy meeting next week will remain firm, even if the United States (US) and Iran announce a permanent peace deal before the meeting.
“If a peace deal is confirmed just before the meeting, it will be part of the discussion. But we won’t know whether it will last or be credible,” Wunsch told the newspaper.
Market reaction
There seems to be no impact of ECB Wunsch’s comments on the Euro (EUR). As of writing, EUR/USD trades subduedly at around 1.1625.
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