Delayed Fed cuts could also slow ECB, Wunsch says

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Delayed Fed cuts could also slow ECB, Wunsch says
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Pro-Palestinian encampment at Dalhousie University - May 13, 2024 | SaltWire #news #halifax #protestFRANKFURT - The European Central Bank's first two interest rate cuts are a"no brainer" but slower than expected policy easing in the U.S. could delay some of the ECB's moves, Belgian central bank chief Pierre Wunsch told German newspaper Handelsblatt.

"Nevertheless, we should proceed gradually and not too quickly. We should refrain from committing to a second rate cut already in July." Wunsch also said that a delay in rate cuts by the U.S. Federal Reserve could slow the pace of ECB rate cuts but this was unlikely to derail euro zone disinflation as well.

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